The State Bank of Pakistan remains firm in its decision to prohibit cryptocurrency exchange in Pakistan.
Despite the increasing global interest in digital assets, Pakistan still does not favor cryptocurrency.
SBP shows no flexibility despite the legal battles took place initiated by investors and traders
The State Bank of Pakistan has reiterated its stance on Cryptocurrency trade in the country.SBP, acting as Pakistan’s banking regulator, has warned all entities to stop such activities in cryptocurrency exchange. Activities such as trade, holding, transferring value, promoting, or investing in digital currencies are prohibited in Pakistan.
According to the circular issued in 2018, the SBP highlighted that cryptocurrencies are not entitled to legal trade, and no individual or entity is authorized to sell, exchange, purchase, or invest in digital currencies in Pakistan.SBP mentioned its stance on a cryptocurrency exchange in Pakistan.
Cryptocurrencies, including Ethereum and Bitcoin, have become popular in recent years. But these currencies can still not maintain their position in many countries due to money laundering fraud and market volatility concerns. Pakistan is where the central bank has taken proactive measures to cryptocurrency trading.
The SBP is constantly highlighting the issues and risks associated with cryptocurrencies.SBP has underlined the potential for illegal activities, the lack of regulatory oversight, and the risk of financial loss.
Pakistan is not the only country against cryptocurrency trading and has implemented strict regulations. Countries including China, Algerians, and Morocco have also banned digital trading. On the other hand, other countries such as India, the United States, France, Germany, England, and the Russian Federation have adopted different rules and regulations, allowing Cryptocurrency exchange to some extent. At the same time, EI Salvador is very active and has taken a step to recognize cryptocurrency as a legal tender.
According to SBP in its most recent Financial Stability review, the emergence of crypto assets has made the monetary policy effective as it operates without the oversight and regulation associated with the trade’s traditional components.
The SBP’s Stance has disappointed many business owners and individuals who were hopeful for a more lenient approach towards cryptocurrencies. In contrast, State Bank cares for its individuals, so it is still firm in its decisions to protect its financial assets. The central bank is constantly promoting digital payments and electronic banking services to improve financial inclusion and enhance the efficiency of financial transactions.
Nevertheless, the decision and lack of flexibility have created significant obstacles for individuals interested in cryptocurrency trading.
As the cryptocurrency exchange grows rapidly, it is still being determined whether the State Bank will change its stance. As for now, individuals are advised to accept the decision taken by SBP and refrain from engaging in cryptocurrency trading.