Govt Has No Intention Of Legalising Cryptocurrencies, Says Pakistan Minister

Cryptocurrencies have been banned in Pakistan as per the decision of the Senate Standing Committee on Financial Affairs. According to Pakistani MP and former Minister of Finance, Saleem Mandviwalla, a significant amount of Pakistan’s funds, amounting to billions of dollars, are involved in cryptocurrency. However, officials from the State Bank of Pakistan (SBP) believe that cryptocurrencies are fraudulent means, which will never be acknowledged in the country.

These officials have further stated that Pakistan’s Federal Investigation Agency (FIA) and Financial Monitoring Unit (FMU) are implementing stringent measures to combat investments made by Pakistani individuals in cryptocurrencies.

Ayesha Goush Pasha, Minister of State for Finance in Pakistan, has made it clear that the government has no intention of legalising cryptocurrencies in the country. Pasha stated that both the SBP and the Ministry of Information Technology have initiated measures to enforce the ban on cryptocurrencies. Additionally, Pasha mentioned that the Financial Action Task Force (FATF) has imposed certain conditions related to this matter, emphasising that cryptocurrencies cannot be permitted.

FATF is a global body that regulates and keeps a close watch on money laundering and terrorist financing.

Mandviwalla raised concerns regarding the substantial amount of Pakistani rupees entangled in cryptocurrencies. In response, officials from Pakistan’s Central bank, State Bank of Pakistan, mentioned that the FIA and FMU are actively addressing the issue.

It is noteworthy that there has been a significant surge in cryptocurrency mining activities in Pakistan recently, despite the ban on cryptocurrency trading and mining imposed in the country back in 2018.

Pakistan has decided to block all internet-based services related to cryptocurrencies within the country. The government of Pakistan has stated that this measure is aimed at tackling illicit transactions involving digital currencies, in accordance with the guidelines set by the FATF. In fact, FATF had imposed a condition on Pakistan that cryptocurrency should never be legalised in the country.

The State Bank of Pakistan’s Director, Sohail Javed, concurred with this standpoint, emphasising the significant risks associated with cryptocurrencies. He pointed out that the cryptocurrency market, which was once valued at $2.8 trillion, has now dwindled to $1.2 trillion.