Urdubit Exchange Based in Pakistan Shuts Down After Crypto Ban
Customers Urged To Withdraw Funds
Urdubit which is one of the leading bitcoin exchange in Pakistan has been involved in a permanent shut down. This happened after State Bank of Pakistan banned cryptocurrencies in the country. Therefore, this exchange told the customers to make withdrawals of their funds quickly. The organization took social media to announce that crypto transactions had been prohibited. Additionally, other exchanges will do the same.
All Bitcoin Orders Cancelled By Urdubit
The first ever Bitcoin exchange based in Pakistan made announcements to shut down the exchange just moments after the central bank of Pakistan banned all transactions related to crypto. The organization took the Twitter and Facebook platforms to announce the ban.
SBP on April 6 issued a circular which was meant to prohibit all the crypto dealings in Pakistan. This move, however, came just after the same happened in India where the central bank banned cryptocurrency trading. Therefore, the SBP gave notice to the commercial banks to stop using, trading, transferring and holding crypto coins. Mohammad Javed signed a document which said that businesses and banks should not in any way facilitate crypto transactions of the account holder and customers.
Due to the current stance on virtual currencies by the SBP, we are closing Urdubit. Withdraw your funds as soon as possible! Please, buy BTC instantly, as we are canceling orders on, or withdraw your PKR [Pakistani Rupee] immediately.
Therefore, over the weekend, users and customers were urged to make withdrawals of their funds due to the fact that withdrawals would be closed.
Pakistan Crypto trading future unclear
This prohibition is said to have been issued without an official government mandate. However, cryptocurrencies in the country are not legislated. SBP further urged the banks in Pakistan to report any crypto transactions to the FMU (Financial Monitoring Unit). Additionally, the citizens were urged not to use cryptocurrencies when transferring money abroad. SBP also said that bitcoin and other digital currencies are not a legal tender in the country.
It is still a mystery if most of the customers have managed to withdraw their money from the exchange. However, the site had claimed that it would not be liable to the customers who won’t withdraw. However, it is not clear if they will reopen.
Therefore, the other crypto exchanges and banks based in Pakistan have decided to refrain from this trade to heed the SBP guidelines.