Crypto News Flash #134 : Pakistan Bans Cryptocurrencies On Account Of High Volatility & Potential Illegal Use Cases !!
These days cryptocurrencies are no longer a 'hot' topic, rather it is mostly being used in context of criticism. Various countries are planning to curb the use of cryptocurrencies in their respective nations. Each day we usually hear some negative news regarding cryptocurrencies issued by some country.
Yesterday, it was India who prohibited all the legal institutions like Banks to provide any kind of services to crypto-related entities. This news made a huge FUD in crypto nation and price of cryptocurrencies started to face even more downward pressure.
But today, Pakistan has also a issued statement in which it has banned cryptocurrencies completely in its domestic borders.
State Bank of Pakistan (SBP) has banned the use/buying/selling of cryptocurrencies with immediate effect, though the crypto volume is very low from Pakistan.
As per this source, the Pakistan Government explained the above decision briefly:
"The SBP has not authorised or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such virtual currencies/coins/tokens in Pakistan. All banks, development financial institutions, microfinance banks and payment system operators, payment service providers are advised to refrain from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies/tokens".
Additionally, SBP will not allow any of their customers to deal in cryptocurrencies/tokens anyhow. In order to defend their statement, they are just using the potential illegal activities which might be done using cryptocurrencies.
Let's hope a bright future for cryptocurrencies, especially now when all the FUD is hitting cryptocurrencies these days.
Thanks for reading ...!!
Its sad when they take these actions in the places that will most benefit from adopting cryptocurrencies. I imagine that the majority of population are unbanked given the inability to access fair fees and treatment. The financial institutions are strong in most countries and will lead the first wave of objections to regulators.