Industry players slam Pakistan’s crypto prohibition idea. The Commonwealth Games will be held in India’s capital, New Delhi. In the summer of 2010. According to reports in the local media. The government of Pakistan and its central bank are considering imposing a ban. On cryptocurrency use in the country’s neighboring state of Afghanistan. The restriction, according to sources in the local media, would be effective immediately.
It has been suggested by a committee led by Sima Kamil. The deputy governor of Pakistan’s central bank, the State Bank of Pakistan (SBP). That the use of cryptocurrencies be restricted in the country.
Members of the committee included representatives from the Ministry of Finance. The Securities and Exchange Commission of Pakistan (SEC). And the Federal Investigation Agency of Pakistan (FIA), among other organizations (FIA).
According to the central bank, the proposal is the first time. That the institution has stated a clear position on the subject. Banks were barred from doing business with cryptocurrency exchanges. Following the issue of a circular by the SBP in 2018.
Following a hearing on a digital currency-related problem. The committee submitted its findings to the Sindh High Court. Which had ordered the group’s formation in the first place. As a result of concerns voiced about the use of Bitcoin for money laundering. And terrorist financing, the government took this measure.
In light of the Federal Investigation Agency’s (FIA) preparations. To investigate the local arm of cryptocurrency exchange Binance. As a possible participant in a scam that has cost several thousand investors. More than $100 million, the cryptocurrency business in Pakistan. Has recently gained widespread public attention.
A local TV personality and crypto entrepreneur brought the case to light the industry players
Waqar Zaka, a local television host and crypto entrepreneur. Brought the matter to the public’s attention. By urging that the court rule that cryptocurrencies be made legal in Pakistan. Citing a large number of Pakistanis who interested in them.
Zaka released a tweet in which he accused anonymous individuals of receiving death threats. And said that Imran Khan, the current Prime Minister of Pakistan. Is anti-cryptocurrency by nature, a claim that was denied by the Pakistani government.
After receiving no response to his last video message, Zaka pledged to march. On Islamabad’s Democracy Chowk in protest of the looming Bitcoin ban. If he was also denied access to any legal recourse.
Many Pakistanis believe that Bitcoin is the answer to their financial woes. And they have invested heavily in it. Increased inflation, enormous debt, and depletion of foreign exchange reserves. Are all challenges facing the administration.
Those who work in the cryptocurrency industry, on the other hand. Have criticized Pakistan’s decision to ban cryptocurrencies. Arguing that it is a non-solution and that the government. Is on the approach of making a catastrophic mistake.
A bitcoin transaction is more than a payment, says Vikas Ahuja. The CEO of CrossTower India. “Bitcoin is more than just a payment,” he says. Due to the outbreak, there has been a significant surge in cryptocurrency investment. In Pakistan, which has also created a new framework for the exchange of money and information.
Moreover, It is his opinion that “by opting for control over innovation. Pakistan risks losing its also leading role in the world’s most critical sector within a few decades.”
In order to criminalize cryptocurrency assets, industry observers believe that Pakistan is aiming. To also drive innovation and growth from the country.