The State Bank of Pakistan (SBP) has reaffirmed its position against legalizing digital currencies, stressing its directives to financial institutions to avoid cryptocurrency transactions.

Responding to media queries, SBP spokesperson Noor Ahmed clarified that the bank’s stance remains unchanged, citing previous circulars issued in 2018.

These directives barred financial entities, including banks and payment service providers, from facilitating or investing in cryptocurrencies, warning of the associated risks and lack of legal protections.

Cryptocurrency adoption in Pakistan remains significant despite the prohibition, with a $20 billion trade recorded in 2020-21.

Karachi Chamber of Commerce report ranked Pakistan third in the Global Crypto Adoption Index during that period.

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Globally, countries differ in their approach to cryptocurrency. Nations like El Salvador and the Central African Republic have legalized Bitcoin, while others like China and Saudi Arabia maintain strict bans.

The SBP, however, continues to highlight the potential dangers and remains steadfast in its policy against legalization.

Back in 2022, the FIA’s cybercrime wing has written to the Pakistan Telecommunication Authority (PTA) to block access to more than 1600 crypto trading websites.

However, Federal Minister for Science & Technology Shibli Faraz has said that Pakistan has plans to adopt the blockchain technology that serves as a backbone for cryptocurrencies.

Director FIA Babar Bakht Qureshi has previously said that cryptocurrency is being used for money laundering. Today, Qureshi revealed that a list of individuals involved in the trade of cryptocurrency is being prepared.’

Source: The Independence Urdu