Pakistan to Ban Cryptocurrency-Related Online Services

Liputan6.com, Jakarta Authorities in Pakistan will ban all internet-based crypto services despite significant digital asset investments by citizens of the country.

The decision comes as government officials in Islamabad are taking a firm stance against the legalization of cryptocurrencies such as bitcoin.

Launching Bitcoin, Friday (19/5/2023), the government of Pakistan announced its decision to suspend services cryptocurrencies offered online in the country.

One of the stated goals of the act is to prevent illegal transactions with digital assets.

The State Bank of Pakistan (SBP) and the Ministry of Information Technology have started work to ban cryptocurrencies.

This was disclosed by Minister of State for Finance Aisha Ghaus Pasha during a meeting of the Senate Standing Committee for Finance and Revenue.

“(Cryptocurrency) will never be legalized in Pakistan,” said Pasha, quoted by the News International daily.

He cited requirements from the Financial Action Task Force (FATF), the international body fighting money laundering and the financing of terrorism, that countries must fulfill.

According to the Pakistani newspaper, the government official referred to potential risks to Pakistan following its removal from the FATF ‘gray list’ last fall.

It has been doing so since 2018 due to strategic deficiencies related to counter-terrorist financing. “The FATF has set a condition that cryptocurrencies will not be legalized,” said Pasha.