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State Bank of Pakistan recommends ban on cryptocurrency in pakistan putting Income of thousands of miners at stake

Instead of empowering millions of jobless youngsters/students to take benefit from the mining of cryptocurrency, the panel of the State Bank of Pakistan has suggested a complete ban on crypto, etc.

ISLAMABAD: The State Bank of Pakistan has recommended a ban on cryptocurrency and other related activities in the country at a time when millions of people are earning their livelihood from mining of crypto throughout the world.

In Pakistan, thousands of youngsters are mining cryptocurrency at home and earning their pocket money every month, but FIA and State Bank of Pakistan are making it sure that common people don’t earn money. If mining of crypto is made legal, every month Pakistan can receive more or less $100 million.

Instead of empowering millions of jobless youngsters/students to take benefit from the mining of cryptocurrency, the panel of the State Bank of Pakistan has suggested a complete ban on crypto, etc.

The Sindh High Court had directed the SBP for the constitution of the committee under the supervision of SBP’s deputy governor, along with officials from ministries of finance and information technology, Pakistan Telecommunication Authority, and Security and Exchange Commission of Pakistan.

The court takes the committee’s opinion to mull over whether any form of cryptocurrency could be permitted under Pakistani law.

The committee has suggested a complete ban on all cryptocurrency and other related activities in the country.

In its report, the committee said after a careful risk-benefit analysis, it came to light that the risks of cryptocurrencies far outweigh its benefits for Pakistan.

The committee opined that only the use of cryptocurrency in Pakistan seems to be speculative where people are being enticed to invest in such coins for short-term capital gains.

The committee went on to suggest that such enticement may result in the flight of precious foreign exchange as well as the transfer of illicit funds from the country.

The committee also suggested a ban on unauthorised operations of crytpcurrency exchanges.

The committee stated that exchanges like Binance, OctaFx, etc. should be banned for their unauthorised operations, while proportionate and dissuasive penalties should be imposed on them.

Petitioner Waqar Zaka, however, opposed the recommendations.

The SHC’s division bench, headed by Justice Mohammad Karim Khan Agha, directed the committee to send a copy of the report to the Ministry of Finance and Ministry of the Law.

The ministry will consider the same at joint meetings and reach a final decision whether or not cryptocurrency, in any form, can be allowed in Pakistan and, if so, what would be its regulatory framework.

The court directed the Ministry of Finance and the Ministry of Law to place a joint recommendation as to whether the business of cryptocurrency in any form can legally be carried out in Pakistan as this was also causing difficulty at this point in time for those persons engaged in it — keeping in view Federal Investigation Agency’s constant raids and freezing of bank accounts, which are allegedly being made by the users/dealers of this type of currency.

The court directed secretary finance and secretary law, or other senior officers well conversant with cryptocurrency from the law minister to appear in person and file the respective report on April 11.

Javed Mahmood
Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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