KARACHI: A committee, constituted under the supervision of the Deputy Governor State Bank of Pakistan and other officials to consider the operation of any form of cryptocurrency in Pakistan, has recommended a complete ban on cryptocurrency and other related activities in Pakistan.
The committee was constituted by the Sindh High Court under the supervision of the Deputy Governor of SBP along with officials from the ministries of finance, information technology, the Pakistan Telecommunication Authority and the Pakistan Security and Exchange Commission to consider issues on whether any form of cryptocurrency should be allowed. under Pakistani law.
Filing a compliance report with the SHC on a petition against restrictions on virtual currency trading, the committee suggested an outright ban on all cryptocurrencies and other related activities in the country. The report stated that after careful risk-benefit analysis, it emerged that the risks of cryptocurrencies far outweigh their benefits for Pakistan. The committee opined that only the use of cryptocurrencies in Pakistan appears to be speculative in nature, where people are tempted to invest in such coins for short-term capital gains. The committee went on to suggest that such temptation may result in the flight of precious currency as well as the transfer of illicit funds out of the country.
The committee also suggested a ban on unauthorized trading of exchanges. The committee stated that exchanges like Binance, OctaFx, etc. they should be banned for their unauthorized operations and proportionate and dissuasive sanctions should be imposed by the federal government, as other countries have done. However, petitioner Waqar Zaka opposed the recommendations.
The SHC division bank, headed by Judge Mohammad Karim Khan Agha, ordered the committee to send a copy of the report to the Ministry of Finance and the Ministry of Law, which will consider it in joint meetings and make a final decision on whether to the cryptocurrency or not. in any form will it be allowed in Pakistan and if so what would be the regulatory framework of such business.
The court ordered the Ministry of Finance and the Ministry of Law to make a joint recommendation on whether cryptocurrency business in any form can be legally carried out in Pakistan, as this was also causing difficulties at the moment for those involved in such activities. business taking into account the constant raids and freezing of bank accounts, which are allegedly being carried out by the users/traders of this type of currency by the FIA.
The court-directed finance secretary and secretary of the Ministry of Justice or other senior officials well versed in cryptocurrencies of the justice minister will appear in person and submit the respective report on April 11.
