The government of Pakistan is set to ban all internet-based cryptocurrency services, despite significant investments made by Pakistani citizens in digital assets. The decision comes as government officials in Islamabad take a firm stance against the legalization of cryptocurrencies such as bitcoin.
In a recent meeting of the Senate Standing Committee on Finance and Revenue, Minister of State for Finance Aisha Ghaus Pasha revealed that the State Bank of Pakistan (SBP) and the Ministry of Information Technology are working on implementing the ban. Pasha emphasized that cryptocurrency will never be legalized in Pakistan, citing the requirements of the Financial Action Task Force (FATF), an international organization combatting money laundering and terrorism financing.
The move aims to prevent illegal transactions involving digital assets and address potential risks associated with Pakistan's removal from the FATF's 'grey list' in 2022. Pasha stressed that the ban is a condition set by the FATF.
Sohail Jawad, Director of the SBP, supported the decision, highlighting the high risks associated with crypto transactions and stating that they will never be permitted in Pakistan. He also mentioned the large number of existing coins and the decline in the overall cryptocurrency market.
Despite a previous ban on cryptocurrency trading and mining in 2018, both activities have continued in Pakistan, prompting the government's renewed efforts to enforce stricter regulations.
It remains to be seen whether the Pakistani government will effectively enforce the ban on crypto-related activities and services. Share your thoughts on the matter in the comments section below.
