The news has been cameup when State Bank of Pakistan have issued a circular on its website prohibiting the issuance, purchase, sale, investment or exchange of any virtual currencies or initial coin offerings (ICO) in Pakistan.
In view of the foregoing, all Banks/ DFIs/ Microfinance Banks and Payment System Operators (PSOs)/Payment Service Providers (PSPs) are advised to refrain from processing, using, trading, holding, transferring value, promoting and investing in Virtual Currencies/Tokens. Further, banks/DFIs/Microfinance Banks and PSOs/PSPs will not facilitate their customers/account holders to transact in VCs/ICO Tokens.SBP have been clearly noted that no entity has been authorized for dealing in any form of cryptocurrency, such as bitcoin, Pakcoin, Litecoin, and more. Furthermore, all banks have been specifically advised to avoid investing in these currencies, with the bank.
Further more, if any individual is found in involving into the transaction of any crypto currency, it will be reported as suspicious and legal action being taken by the Financial Monitoring Unit (FMU).
Its clear that banned has been done due to highly volatile prices of such currencies. The security of cryptocurrency exchanges has been compromised a number of times; cybercriminals took advantage of the crypto mining craze last year.