legalizing cryptocurrency

In the recent news, Federal Minister for Information Fawad Chaudhry brought clarity on the matter of legalizing cryptocurrency in Pakistan, as he stated that there are no chances of Pakistan legalizing digital currency anytime soon.


Legalizing Cryptocurrency Can Increase Illegal Transactions in the Country

“There are no guarantees behind the currency and we cannot allow the use of any digital currency just on the basis of its trust level in the market,” stated Fawad Chaudhry on the matter of legalizing cryptocurrency. While mentioning another reason behind not legalizing cryptocurrency in the country, Fawad Chaudhry said that the level of instability in the cryptocurrency is unprecedented worldwide.


“We are also bound through FATF conditions to refrain from allowing any such mode of payment in the country,” he said. The information minister, Fawad Chaudhry, however, continued that eventually, the world has to move towards the means of digital payments. Bank in 2018, the State Bank of Pakistan (SBP) cautioned the commercial banks and public banks against the use of digital currency such as Bitcoin or Litecoin further strengthening the decision of not legalizing cryptocurrency.


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According to an official notice published by the central bank, cryptocurrencies like Bitcoin, Litecoin, Pakcoin. OneCoin, DasCoin, and Pay Diamond are neither acknowledged as a Legal Tender nor has SBP approved or licensed any individual or entity for the distribution, sale, acquisition, dealings, or investment in any such digital currencies or tokens in Pakistan.


Bank Customers Are Advised Not to Transact in Virtual Currencies

“Banks/DFIs/Microfinance Banks and Payment System Operators (PSOs)/ Payment Service Providers (PSPs) have been advised not to facilitate their customers/account holders to transact in virtual currencies,” reads a notice issued by the central bank. 


The notice against legalizing cryptocurrency warns the general public that cryptocurrencies and tokens deliver a high degree of anonymity and potentially can be utilized for facilitating unlawful activities and no legal defense or alternative is available to any individual in the possibility of a loss incurred due to failure or closure of virtual currency sales or security settlements of cryptocurrency businesses and wallet trades.


Source: Pro Pakistani


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