Cryptocurrency

Wednesday

April

Force

<p>The digital financial world is witnessing a major shift as Pakistan, a country where digital assets have seen substantial investments, is leaning towards imposing a sweeping ban on all online cryptocurrency services. The government of Islamabad, which has taken a stern stand against the legalization of digital currencies like Bitcoin, appears set on taking an unforgiving approach against the burgeoning cryptocurrency market in the country.</p>
<h1 style="text-align: center;" id="8220-cryptocurrency-will-never-be-legalized-8221">&#8220;Cryptocurrency Will Never Be Legalized&#8221;</h1>
<p>The news broke on Wednesday as the Pakistani government announced its decision to <a href="https://walletinvestor.com/magazinadmin/uk-set-to-introduce-crypto-regulations-within-a-year/">suspend</a> all internet-based cryptocurrency services in the country. Local media reported that the stated objective behind this measure is to stem the tide of illicit transactions involving digital assets.</p>
<p>Minister of State for Finance Aisha Ghaus Pasha, while attending a meeting of the Senate Standing Committee on Finance and Revenue, disclosed that the State Bank of Pakistan (SBP) and the Ministry of Information Technology have already initiated work towards prohibiting cryptocurrencies in Pakistan. Citing international obligations, Pasha declared that cryptocurrency &#8220;will never be legalized in Pakistan,&#8221; referring to the guidelines of the Financial Action Task Force (FATF), an international body that combats money laundering and terrorism financing.</p>
<p>Pasha&#8217;s statement stems from Pakistan&#8217;s recent exit from the FATF&#8217;s &#8216;grey list&#8217; in the fall. The country had been included in this list since 2018 owing to &#8220;strategic counter-terrorist financing-related deficiencies&#8221;. Consequently, the potential risk that comes from non-compliance with FATF directives may have significant implications for the country&#8217;s financial reputation.</p>
<p>In her comments, Pasha quoted the FATF as setting a condition that cryptocurrency should not be legalized, giving the stern FATF requirements as a primary reason for the impending ban on cryptocurrencies.</p>
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
<p lang="en" dir="ltr">🇵🇰 Pakistan, a country with a population of over 23.8 crores has banned <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> citing that it can be used for financial terrorism.<br /> <br />Seriously ?😳😑<br /> <br />What do you think is the real reason behind this ban ? 👇 <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> <a href="https://twitter.com/hashtag/cryptocurrency?src=hash&amp;ref_src=twsrc%5Etfw">#cryptocurrency</a> <a href="https://twitter.com/hashtag/CryptoNews?src=hash&amp;ref_src=twsrc%5Etfw">#CryptoNews</a> <a href="https://t.co/lPWATy7Xjc">pic.twitter.com/lPWATy7Xjc</a></p>
<p>&mdash; Wise Advice By Sumit Kapoor (@sumitkapoor16) <a href="https://twitter.com/sumitkapoor16/status/1659070269628227584?ref_src=twsrc%5Etfw">May 18, 2023</a></p></blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<h2 style="text-align: center;" id="the-risks-of-cryptocurrency">The Risks of Cryptocurrency</h2>
<p>The SBP Director, Sohail Jawad, voiced support for Pasha&#8217;s position, stating that cryptocurrency transactions are too risky to be permitted in Pakistan. He pointed to the vast array of coins currently in circulation and underlined the significant contraction in the global crypto market, which shrunk from $2.8 trillion to $1.2 trillion.</p>
<p>Jawad also discussed the dilemma posed by the billions of dollars that Pakistanis have already invested in crypto assets. He indicated that the country&#8217;s Federal Investigation Agency (FIA) and the Financial Monitoring Unit (FMU) are currently addressing this issue, though he did not provide further details.</p>
<h2 style="text-align: center;" id="cryptocurrency-boom-in-pakistan">Cryptocurrency Boom in Pakistan</h2>
<p>It&#8217;s important to note that before the government&#8217;s ban in April 2018, Pakistan witnessed a significant <a href="https://www.youtube.com/watch?v=1u77qDhoZ-Y&amp;feature=youtu.be&amp;themeRefresh=1">boom</a> in cryptocurrency trading and mining. Despite the official prohibition, both activities have continued unabated in the country. The burgeoning cryptocurrency market thrived in Pakistan, even as government actions sought to suppress it.</p>
<h2 style="text-align: center;" id="conclusion">Conclusion</h2>
<p>Pakistan&#8217;s recent move to ban all online cryptocurrency services represents a stern stance against digital assets and paints a grim picture for the future of cryptocurrency in the country. However, it&#8217;s also worth noting that as long as the global adoption and acceptance of cryptocurrency continue to rise, countries like Pakistan may find themselves grappling with the difficult task of trying to suppress an increasingly ubiquitous technology. For now, though, it seems that Pakistan&#8217;s crypto enthusiasts will have to navigate an uncertain and challenging environment.</p>

Pakistan’s Crackdown on Cryptocurrency

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