Pakistan’s law and finance ministries have yet to make a decision on a potential ban on cryptocurrencies in the country.
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The State Bank of Pakistan (SBP) is reportedly looking to ban all crypto transactions in Pakistan.
Pakistan’s Sindh High Court is reported to have held a hearing regarding the legal status of cryptocurrencies in the country, during which several Pakistani authorities including the SBP filed a document went to court, arguing that cryptocurrencies like Bitcoin (BTC) are illegal and cannot be used for transactions.
According to local news channel Samaa Tv, the document cited at least 11 countries including China and Saudi Arabia that have chosen to ban cryptocurrencies. The central bank of Pakistan is said to have urged the court not only to ban crypto activities but also to introduce penalties against crypto exchanges.
SBP also addressed several investigations against cryptocurrency exchanges by the Federal Bureau of Investigation (FIA), citing investor protection risks as well as money laundering concerns and terrorism. As previously reported, the FIA started a criminal investigation against Binance, the world’s largest cryptocurrency exchange, in early January, alleging possible links to a scam. Island millions of cryptocurrencies in the region.
Although the SBP has proposed a comprehensive ban on cryptocurrencies, the Sindh High Court has yet to issue an order banning crypto transactions in Pakistan.
Instead, the court ordered the bank’s appeal to the finance and law ministries, which will make the final decision on the legal status of cryptocurrencies in the country and be certain whether the order Is a cryptocurrency ban constitutional?
This news comes years after SBP issued an initial ban on virtual currency and token trading in April 2018. At the time, the central bank argued that cryptocurrencies like Bitcoin or initial coin offerings are not legal tender and are not “issued or guaranteed by the government of Pakistan. ”
SBP did not immediately respond to Cointelegraph’s request for comment. This article will be updated with new information pending.
Related: The number of countries banning cryptocurrencies has doubled in three years
The latest moves by the Pakistani government echo similar events developing in many countries, including India and Russia, where central banks are trying to ban cryptocurrencies, while ministries Other parts of government are not necessarily inclined to such prohibitions. In 2020, India’s central bank had to lift a ban on banks’ dealings with crypto-related companies by order of the country’s Supreme Court.