The State Bank of Pakistan (SBP) and the federal government have decided to ban the use of all cryptocurrencies. This is reported by Samaa citing a report presented to the Supreme Court of Sindh.
On 20 October 2021, the court ordered authorities to form within three months a committee to establish a regulatory framework for cryptocurrencies, and to prepare a report on the use of digital assets.
The document states that cryptocurrencies are illegal and cannot be used for trading.
It lists at least eleven countries, including China and Saudi Arabia, that have banned virtual currencies.
The report also mentions an investigation by authorities into crypto exchanges, such as Binance and OctaFx, and the risk these platforms pose to investors.
The court ordered the document to be sent to the ministries of finance and justice for a final decision on the legal status of cryptocurrencies. These ministries will also determine whether the ban on digital assets is consistent with the Constitution.
The 38-page report was presented by SBP deputy governor Sima Kamil. In 2018 the central bank issued a circular banning financial institutions from engaging in any dealings with virtual currencies.
As noted by researchers at the United States Library of Congress’s Law Library, 51 countries worldwide have, in some form, imposed bans on cryptocurrencies.
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