Key Takeaways:
- SBP supports the ban of cryptocurrencies.
- Reports have been produced to SHC supporting the ban of virtual currencies.
- The law and finance ministries of Pakistan are responsible to give the final verdict.
- The next hearing will be on April 12.
A report submitted by Sindh High Court (SHC) on Wednesday, stated that the State Bank of Pakistan (SBP) and the Federal government are planning to impose a complete ban on the use of all cryptocurrencies in Pakistan. The decision regarding the status of digital currencies in the country has been long delayed due to the absence of laws. SHC has therefore instructed to foist penalties against crypto exchanges as well.
The committee formed in direction of the court for regulating cryptocurrencies in three months has stated that it is illegal and therefore the trading of these currencies should be banned. To further support its statement, the committee has mentioned eleven countries (including China and Saudi Arabia) that have put a ban on the same. FIA’s recent investigation against crypto exchanges posing threats to investors further backs the report.
SBP Deputy Governor-General, Seema Kamil is also for the ban of cryptocurrencies and has submitted a 38-page report stating that these virtual currencies can be used to support acts of terrorism and money laundering. Prior to this, SBP had also warned banks that digital currencies are not legal tenders that have been issued by the Government of Pakistan.
A petitioner Waqar Zaka is pleading with the court to legalize the use of cryptocurrency in the country as thousands of investors in Pakistan have already invested $20 billion in this. A final decision is still awaiting as the law and the finance ministries will be responsible for directing the ban, according to the orders given by SHC. The next hearing of the case will be on April 12.
