The government of Pakistan has issued a statement on its suspension and ban of cryptocurrency in the country. The Middle Eastern nation said it’s taking steps to clamp down on illegal digital currency transactions within the country.
As per the source, the State Bank of Pakistan (SBP) and the Ministry of Information Technology are taking measures to limit and stop its citizens from accessing crypto-related services based on the order from the government.
Dr. Aisha Ghaus Pasha, who is the Minister of State for Finance and Revenue said that the cryptocurrency will “never be legalized in Pakistan” based on the recommendations of the Financial Action Task Force (FATF).
The Financial Action Task Force (FATF) is an intergovernmental organization founded in 1989 to develop policies to combat money laundering and terrorism financing. It has 39 member countries and two regional bodies, and observer status with the United Nations and the European Union.
The FATF’s mission is to set international standards and promote the effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
The FATF’s Recommendations are a set of 40 measures that countries can implement to combat money laundering and terrorist financing.
The FATF’s work is important because it helps to protect the global financial system from being used by criminals and terrorists and helps to build international cooperation in the fight against these crimes.
In support of Dr. Aisha, the SBP Director, Sohail Jawad, added that the risky and volatile nature of cryptocurrencies makes it unfit for Pakistan to approve.
Another leader, Senator Saleem Mandviwalla of the Pakistan Peoples’ Party (PPP) pointed out that he has concerns over the monies spent and invested in the industry as a whole.
Pakistan and crypto
Pakistan has a complex relationship with cryptocurrency. On the one hand, the country has seen a surge in cryptocurrency adoption in recent years, with Pakistanis reportedly holding $20 billion worth of crypto in 2021. On the other hand, the government has been hostile to cryptocurrency, banning it in 2018 and again in 2022.
The government’s opposition to cryptocurrency is largely due to concerns about its use for money laundering and terrorist financing. Despite the government’s opposition, there is a growing movement in Pakistan to legalize cryptocurrency.
A number of businesses and organizations have come out in support of cryptocurrency, arguing that it can provide a number of benefits, such as increased financial inclusion and economic growth. While the majority of the exchanges that operate in the country are anonymous.