Pakistan will ban cryptocurrency services operating in the country and will never legalize cryptocurrency trading, Minister of State for Finance Aisha Ghaus Pasha stated at a session of the Senate Standing Committee on Finance and Revenue on May 16, according to various local media reports. Other officials, including the director of the State Bank of Pakistan, Sohail Jawad, spoke in favor of the decision.
Pasha claimed that the ban on cryptocurrencies was one of the requirements set by the Financial Action Task Force (FATF), which removed Pakistan from its gray list in October. The gray list includes countries that the body considers deficient in their measures against money laundering and terrorist financing, but that collaborate with it to correct their deficiencies.
The State Bank of Pakistan (SBP) and the Ministry of Information and Technology were drafting legislation for the ban, according to reports.
The Pakistani cryptocurrency community on Twitter has unleashed a frenzy of disapproval of the upcoming cryptocurrency ban. “I pray that the government focuses on the right area that leads to scams and apps that trap people instead of banning cryptocurrencies,” wrote CryptoPak_. “People are making a lot of money trading cryptocurrencies and the government wants to take this last hope away from the poor people of Pakistan,” said “cryptoarena_1”.
The officials have been destroying Pakistan in the name of #FATF & #IM F. Whatever happens in this country, according to the officials, it’s either IMF’s fault or FATF’s.
May ALLAH soften their hearts for the country and common man. Ameen pic.twitter.com/ymHJ2sqbb6— Crypto Pakistan (@Crypto_Pakistan) May 17, 2023
The FATF cannot impose sanctions on non-compliant countries, but its findings are likely to influence government and business policies around the world. Pakistan’s economy is in deep crisis, and is currently locked in tense bailout negotiations with the International Monetary Fund, so a clean FATF report may be a political priority.
Cryptocurrency adoption in the country has been relatively high, with Pakistani citizens reportedly holding $20 billion worth of crypto as of 2021. However, government opposition to cryptocurrency is not new. According to various news reports, the SBP has been seeking a ban on cryptocurrencies since at least January. Pakistan, however, has plans to launch a central bank digital currency in 2025 and recently adopted a national Know Your Customer (KYC) blockchain platform.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.