In order to stop unauthorized digital currency transactions, the Pakistani government stated on Wednesday that it will block cryptocurrency services offered online in the nation.
According to Geo, in accordance with the directions, the State Bank of Pakistan (SBP) and the Ministry of Information Technology have already started the process of outlawing cryptocurrencies.
Dr. Aisha Ghaus Pasha, the Minister of State for Finance and Revenue, highlighted that cryptocurrencies will never be legalized in Pakistan during a briefing to the Senate Standing Committee on Finance.
The Financial Action Task Force (FATF) has placed constraints on the topic, she revealed, and she stated that one of those restrictions is that cryptocurrencies would not be legalized.
Sohail Jawad, the Director of SBP, backed up Pasha’s position by claiming that because cryptocurrency transactions are so risky, Pakistan will never permit them. He described cryptocurrencies as a form of virtual currency that now comes in over 16,000 variations. He also noted that the market’s valuation, which was $2.8 trillion, had dropped to $1.2 trillion.
The Pakistan Peoples’ Party (PPP) senator Saleem Mandviwalla raised worry on the enormous sums of money being invested in the market. The SBP official responded by assuring him that these worries are being aggressively addressed by the Federal Investigation Agency (FIA) and the Financial Monitoring Unit (FMU), a financial intelligence unit assisting Pakistan in combatting terrorism financing and money laundering.
The increased interest in relevant social media videos and online exchange transactions show that Pakistan has seen a rise in bitcoin trading and mining.
Despite the closure of some mining farms, the government’s April 2018 ban on the selling and mining of virtual currencies hasn’t had much of an impact on the industry.
The majority of exchanges operate covertly through unnamed partners to avoid governmental scrutiny. However, the government continues to make measures to restrict cryptocurrency trade.