SBP Responds to FIA Crackdown on Credit Cards Used for Cryptocurrency Trading

The State Bank of Pakistan (SBP) has stated that the Federal Investigation Agency (FIA) is the appropriate authority to investigate illegal transactions in cryptocurrencies.

Responding to queries raised by ProPakistani, an SBP spokesperson said in case any illegal transaction in cryptocurrencies was discovered, FIA was the appropriate authority to investigate. He made it clear that it was not the central bank’s prerogative to examine any individual if he or she is engaged in the aforenamed illegal activity.

Referring to the recent FIA seizure of over 1,000 bank accounts for crypto transactions, the spokesperson said the central bank had issued a clear directive to the banking sector with regard to the illegality of dealing in cryptocurrency.

To a question, the spokesperson mentioned SBP was conducting internal studies on cryptocurrencies as part of its future monetary strategies in the country. He said, “the case for cryptocurrencies in Pakistan is currently sub judice,” meaning that there should be no public discussions on the said subject.

It is worth considering that despite hopes of a regulatory shift toward adopting digital assets as legal tender, the situation is now incredibly uncertain to determine whether the country will see digital assets regularized in the next few years. So far, the sale and purchase of virtual assets are prohibited under the SBP’s Circular No. 3 of the Banking Policy and Regulation Department (BPRD) dated 6 April 2018.

Earlier this week, FIA seized bank accounts of 1,064 individuals who had carried out 2,923 transactions worth a whopping Rs. 51 million through numerous online exchanges, including Binance, Coinbase, and Coinmama. Moreover, the bank accounts of individuals who had been using Binance P2P to buy or sell cryptocurrencies were also frozen.

Pakistan is among the top 15 in the world for digital currency adoption as of July 2021. According to the President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Pakistanis currently possess cryptocurrencies worth $20 billion.

  • Imran Khan has selected the worst people for top posts. They dont understand any IT and Innovation. Our IT minister has no background in IT. A poet and so called Philosopher (Shibli Faraz) is selected the Science and Technology minister. With these types of Idiots we don’t need any enemies. They are destroying Pakistan and the PTI government. The blame lies on Imran Khan to select this incompetent crowd.

    Do these Jaahil ministers even know that CryptoCurrency is just a small application of Blockchain?. The Blockchain industry is reaching 5 Trillion Dollar value in 2-3 years. 1 Trillion is equal to 1000 Billion US Dollars. Imagine if you capture just 10% of the market then Pakistan can pay back all the foreign debts.

  • Rather than Banning Blockchain and Cryptocurrency please bring regulations so that people can do it Legally. You are banning the emerging technology from Pakistan. The politicians and baabus are just working on Foreign Agenda and banning any technology that can help the youth of Pakistan. Crypto is not banned in Europe, UK and America and they are earning Billions. Learn from them and stop squeezing the resources for Pakistanis.

  • Rather than Banning Blockchain technology and Cryptocurrency please bring regulations so that people can do it Legally and new jobs can be created. You are banning the emerging / innovative technology from Pakistan. The politicians push the youth of Pakistan in back and cutting the youth opportunities. Crypto is legal in Europe, UK and America and they are earning Billions. Learn from them and stop squeezing the resources for Pakistanis

  • You can ban your country from crypto but you can not ban crypto from your country.

    Instead of regulating and capturing value from this emerging market the authorities have chosen a rather paternalistic approach. History has proven time and time again that the early bird catches the worm. Learn something from El Salvador and all these small countries.

    This is utter nonsense and absolutely pathetic!

  • Just to set the record straight – The government has not blocked any technology – it has banned trading that is highly speculative. Having said that, I want to make it clear that I am not in favor of this ban or other such bans because that only drives the whole thing underground and makes things murkier… It would be better to regulate the industry and provide guidelines and awareness instead of a blanket ban.

  • Pakistan ko siwae ban karne k ata kia ha . Technology ka khak pata nahi. Crypto or Blockchain technology har Kisi k bas ka kaam nahi . Government don’t know how it works
    Gorey har Chez se pora faida le Rahe hain

  • That’s why all overseas our pakistani don’t want to invest money in their beloved country, and don’t wanna keep money in Pakistan account. No one knows what will be happend in pakistan. All big whales have billion dollars investment in cryptocurrency. Some they holding for long term and some they r doing spot trading. No one will caught them and no one going to freeze their account Because they have power and government in their hands

  • Khan sb na kaha tha ma 5000000 nokria doo ga or ya wo banda ha jis ki her bat ka Ulta Matlab hota hai.

  • Pakistan Boht tezi se taraki kar Sakta he agar Crypto ko legal kar diya jaye. yahi waje he aj Lakho Pakistani CountrY R Ke jaa rahe he. Poori dunya digital ho chuki he. Hamare Hukmrano ne Bera Ghrak kar diya. Bhai kamaye nahi khyae ye Imran Khan to h logo ko kabar mien utaarne pe tula hua he. Shamefull political Act. Soon I will leave this country. No future only dark ess.

  • This government isn’t different, same incompetent personals handling businesses.
    It’s impossible to ban it now, peoples have much in crypto savings due to insecure policies and control on mechanisms, people was practically forced to get into crypto plus due to money trail it’s foolish for bad people to use it. Short investigation can put money launderers into light.

  • Unban crypto and build Pakistan towards bright future in using modern technology. We all youth 100% support crypto to be fully legally allowed and regulated in Pakistan

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