ISLAMABAD – State Bank of Pakistan in an announcement posted on itswebsite, banned cryptocurrencies in the country.
In the statement, the central bank said, “All banks, development financialinstitutions, microfinance banks and payment system operators, paymentservice providers are advised to refrain from processing, using, trading,holding, transferring value, promoting and investing in virtualcurrencies/tokens.”
What’s surprising is that PakCoin, which is the only cryptocurrency fromPakistan is now up by 60 per cent. The founder of the company, ‘AbuShaheer’, believes the ban worked in the company’s favour as it generatedmore awareness about the use and benefits of cryptocurrencies. “Thetraders gradually realized that the SBP [State Bank of Pakistan] hasn’t(and cannot) ban cryptocurrency in Pakistan, which comes under the ITministry,” Lahore-based cryptocurrency trader Majid Ali said.
“What the State Bank has done is it has banned banks from entertainingcrypto, so if you’re not dealing via banks you [still] can own and tradevirtual currencies,” he said.
Sources within the IT ministry have said that the government plans toformally declare cryptocurrencies illegal in Pakistan. “Even before [thenotice was sent out to banks] the SBP had long clarified that it had nointention of accepting virtual currency,” a government official told *AsiaTimes*. “We have forwarded our recommendation for a ban on all forms ofvirtual currency trading, and proper legislation is being worked on.”
However, while independent traders continue to do business in virtualcurrencies, local exchanges dealing with cryptocurrencies have had to shutthemselves down.