The Pakistani Senate’s Standing Committee on Finance has made a significant decision regarding the country’s cryptocurrency services. The committee has voted to prohibit all cryptocurrency-related internet services in Pakistan. The government has taken a strong posture against the legalisation of cryptocurrencies, prompting this decision.
The Minister of State for Finance, Aisha Ghaus Pasha, stated that the government will never legalise cryptocurrency in Pakistan. State Bank of Pakistan (SBP) and Ministry of Information Technology have already begun implementing the cryptocurrency prohibition.
Financial Action Task Force (FATF) is one of the primary factors influencing this decision. One of the conditions imposed by the FATF on Pakistan is the prohibition of cryptocurrencies within the nation.
Senator Salim Mandviwala drew attention to the multibillion-dollar investments Pakistanis have made in cryptocurrencies. Despite this investment, a decision has been made to prohibit cryptocurrency services.
Officials from the State Bank of Pakistan (SBP) reiterated their stance on cryptocurrencies, stating that they are fraudulent and will not be recognised in Pakistan. It is anticipated that the Federal Investigation Agency (FIA) and the Financial Monitoring Unit (FMU) will also clamp down on cryptocurrency investments by Pakistanis.
Sohail Jawad, director of the central bank, disclosed that the global market for cryptocurrencies has shrunk from $2.8 trillion to $1.2 trillion. In addition, he mentioned that more than 16,000 distinct cryptocurrencies have been developed to date.
This decision by the Standing Committee on Finance of the Pakistani Senate is a significant step against the use and acceptance of cryptocurrencies. The country’s prohibition on cryptocurrency services reflects the government’s apprehensions regarding the risks and fraudulent activities associated with digital currencies.
As soon as the ban goes into effect, the cryptocurrency landscape in Pakistan will endure a substantial transformation, affecting both investors and users. How this decision will affect the future of digital currencies in the country remains to be seen.