ISLAMABAD: To clarify the use of cryptocurrency in the country, Federal Information Minister Fawad Chaudhry said there is no chance that Pakistan will legalize digital currency any time soon, ARY NEWS reported.
"There are no guarantees behind the currency and we cannot allow the use of any digital currency solely on the basis of its level of confidence in the market," he said.
While citing another reason behind not allowing the use of cryptocurrencies in the country, Fawad Chaudhry said that the level of fluctuation in the cryptocurrency is unprecedented globally.
"We are also obliged through the FATF conditions to refrain from allowing that mode of payment in the country," he said. The Information Minister, however, added that ultimately the world has to move towards the mechanism of digital payments.
In 2018, the State Bank of Pakistan (SBP) warned commercial banks and general banks against the use of cryptocurrencies such as Bitcoin or Litecoin.
According to a notice issued by the central bank, cryptocurrencies like Bitcoin, Litecoin, Pakcoin. OneCoin, DasCoin and Pay Diamond are not recognized as legal tender nor has SBP authorized or authorized any individual or entity to issue, sell, purchase, exchange or invest in such virtual currencies or tokens in Pakistan.
"Banks / DFIs / microfinance banks and payment system operators (PSO) / payment service providers (PSP) have been warned not to make it easy for their customers / account holders to transact in virtual currencies," the statement read in a notice issued by the central bank.
The notice cautions the general public that cryptocurrencies and tokens provide a high degree of anonymity and can potentially be used to facilitate illegal activities and there is no legal protection or remedy available to anyone in the event of a loss incurred due to failure or closure. of virtual currency exchanges. or security commitments of cryptocurrency exchanges and wallet businesses.
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