The Central Bank of Pakistan, the State Bank of Pakistan, has recommended a ban on cryptocurrencies in the country. The whole matter has come to the fore after the $100 million crypto fraud was exposed.
State Bank of Pakistan has recommended a ban on cryptocurrencies.
Cryptocurrency ban news: Pakistan moving ahead on the path of its friend China cryptocurrency ban on (Pakistan to ban Cryptocurrency) is thinking about installing. The committee of the Central Bank of Pakistan has recommended a complete ban on cryptocurrency and other related activities in the country. According to a media report, the committee has made this recommendation after a Pakistani court ordered an inquiry into the $100 million digital currency fraud. Recently, the Federal Investigation Agency (FIA) of Pakistan issued a notice to the crypto exchange Binance. The notice was related to the $100 million cryptocurrency scam. Users had complained that the cryptocurrency exchange had transferred their funds to third party wallets. This scam is about Rs 740 crores.
After this fraud case became public, the Sindh High Court had directed the State Bank of Pakistan to constitute a committee under the deputy governor of the bank to investigate. The committee includes members from the Ministry of Finance, Information Technology, Telecom Authority and Security and Exchange Commission.
Penalties on crypto exchanges also suggested
According to the English newspaper The News International, the court had sought the opinion of the committee on whether or not to allow any type of cryptocurrency under Pakistani law. The committee in its report has suggested a complete ban on all cryptocurrencies and other related activities in the country. The State Bank of Pakistan has also suggested imposing fines on crypto exchanges operating in the country.
11 countries have banned cryptocurrencies
SBP said in its report that there are currently 11 countries that have banned cryptocurrencies. These include countries like China, Saudi Arabia. So far, no order has been issued by the court regarding the ban on cryptocurrencies. Countries like Iran and Kazakhstan have expressed concern about the consumption of electricity in crypto mining.
Instructions were given to regulate
Earlier on 20 October 2021, the Sindh High Court had asked the Federal Government to regulate cryptocurrencies within three months. The court had also asked the government to constitute a committee under the leadership of the Finance Secretary. This committee will take a decision regarding the legal status of digital currency.
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