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Pakistan Restricts Banks from Trading in Cryptos

In a statement posted on State Bank of Pakistan’s (SBP), Pakistan’s central bank barred financial companies in Pakistan to work with cryptocurrency firms. With this move, Pakistan’s central bank became

After RBI banned Indian banks from dealing in cryptocurrencies, Pakistan is the latest institution to bar cryptocurrency transactions.

“…all Banks/ DFIs/ Microfinance Banks and Payment System Operators (PSOs)/Payment Service Providers (PSPs) are advised to refrain from processing, using, trading, holding, transferring value, promoting and investing in Virtual Currencies/Tokens. Further, banks/DFIs/Microfinance Banks and PSOs/PSPs will not facilitate their customers/account holders to transact in VCs/ICO Tokens. Any transaction in this regard shall immediately be reported to Financial Monitoring Unit (FMU) as a suspicious transaction.”

The cryptocurrency, Urdubit, which was launched in 2014, said that it would be shutting down due to the statement. Urdubit had been the first bitcoin exchange platform to work in Pakistan. The cryptocurrency exchange platform urged its customer to withdraw their funds as soon as possible through their Facebook page.

 

Their Facebook post also included a link to the statement released by the central bank.

While a lot of countries have been working hard towards getting its citizens to use cryptocurrencies the right way, countries like India and Pakistan aren’t.

Spanish Tax Authorities are planning to ask for crypto usernames and bank accounts, South Korea is planning to implement a new crypto tax framework, and Australia is planning to implement new AML rules for the Bitcoin exchanges in Australia.

And we’re just talking about the plans of the countries so far. South Korea has already started working on a central bank digital currency (CBDC). Quite recently, China and Singapore made the first all-blockchain commodity trade in which¬†Sinochem Energy Technology Co. Ltd shipped gasoline to Singapore.

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Syed Ali Mudassar
It was when he was pursuing his graduation in Computer Science that he found his flair for writing about new and existing technologies. He likes researching about technologies and how they could help people. Currently, he works as the Content Manager at CoinFrenzy, a leading blockchain news, and media publication website.