State Bank of Pakistan has officially banned cryptocurrencies in the country. Though the economy of Pakistan remains unstable, Bitcoin’s rise in value in 2017 has been a major attraction for many investors and stakeholders. At a proper business level the currency has not been accepted in Pakistan but at an individual level, many people are attracted towards the currency.
Though now a circular has been issued on the website of SBP and in it the Bank has clearly banned all kinds of cryptocurrencies including Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond or Initial Coin Offerings (ICO)
SBP said, “The SBP has not authorized or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such virtual currencies/coins/tokens in Pakistan.
Furthermore adding, “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. Further, they will not facilitate their customers/account holders to transact in VCs/ICO Tokens. Any transaction in this regard shall immediately be reported to the Financial Monitoring Unit (FMU) as a suspicious transaction.”
Currently, the price of Bitcoin is $6,643.26. It has gone down by 66% since it got record high in December 2017 at $19,780. The current market value of Bitcoin is $112.7 billion.
Before Pakistan, South Korea was also thinking to put a ban on all cryptocurrencies that are being traded through its exchanges.
Read more: South Korea put a ban on bitcoin
However, there are many companies & countries who are launching their own cryptocurrencies. Dubai is planning to launch its own cryptocurrency called emCash and India is also considering the acceptance of cryptocurrency by introducing Lakshmi. From Bank of England to countries like Russia, England, Dubai, India, Malaysia, Israel cryptocurrencies are being accepted for transactions.