Pakistan Government Bans Cryptocurrency And ICO Trading In Banks

Pakistan Bars Banks From Crypto And ICO Trading

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  • Pakistan stops all bank within the country from trading in digital currencies an ICO.
  • This action followed Indian’s ban on crypto trading in banks.

Pakistan: Pakistan becomes the latest nation barring banks from cryptocurrency transaction as it released a statement through its central bank, the State Bank of Pakistan, restricting all banks and financial institutions within Pakistan from transacting with firms dealing in digital currencies and ICOs.

Also read: US SEC Charges Longfin Fintech Firm For Insider Trading

The statement posted to Pakistan’s central bank’s website, which has also been well circulated around the social media reads:

“…all Banks/ DFIs/ Microfinance Banks and Payment System Operators (PSOs)/Payment Service Providers (PSPs) are advised to refrain from processing, using, trading, holding, transferring value, promoting and investing in Virtual Currencies/Tokens. Further, banks/DFIs/Microfinance Banks and PSOs/PSPs will not facilitate their customers/account holders to transact in VCs/ICO Tokens. Any transaction in this regard shall immediately be reported to Financial Monitoring Unit (FMU) as a suspicious transaction.”

The State Bank of Pakistan (SBP) has refused to give a reply to any comment as the announcement has gathered much velocity and currently impacting the local crypto realm. One of the affected firms was Urdubit crypto exchange, though was launched in 2014 aimed at opening its base of support in Pakistan, however, at the release of the statement, Urdubit said “it will shut down” the operation. Urdubit happens to be the first crypto exchange to launch its operation in Pakistan. Urdubit made this announcement on Facebook, where it urged its clients to “please withdraw (their) funds as soon as possible.”

BlinkTrade’s co-founder, Rodrigo Souza, said that the statement released by the State Bank of Pakistan is targeted towards discouraging crypto investment. He said

“Governments and Banks are going to fight Bitcoin because investing Bitcoin means a bank run on the central bank. We are working hard to return all PKR to all our customers before our bank shut down our accounts.”

The statement by SBP was released a day after RBI barred all financial institutions in India from transacting business with crypto exchanges.

Do you think this actions would have a lasting effect on the cryptocurrency world? Tell us your view in the comment box.

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