An official document made available with a local blog website discloses that the State Bank of Pakistan (SBP) has advised the higher authorities that it does not store any data regarding cryptocurrency bought or sold by Pakistanis.
The SBP claims that no entity in Pakistan is in charge of overseeing cryptocurrency exchanges which are situated in foreign jurisdictions.
Cryptocurrencies, according to the central bank, are neither issued nor guaranteed by the Pakistani government to be legal tender.
As a result, State Bank has not given any person or organization a license or authorization to issue, sell, buy, exchange, or invest in any such virtual currencies, coins, or tokens in Pakistan.
SBP Stance on Cryptocurrency Trading
The SBP has forbidden its regulated entities from processing, utilizing, trading, holding, transferring value, promoting, and investing in cryptocurrency, the Document claims.
The SBP has ordered its regulated firms to forbid assisting their clients in making transactions in virtual money or tokens.
According to the 2010 Anti-Money Laundering Act, regulated companies are required to submit a Suspicious Transaction Report to the Financial Monitoring Unit (FMU) for further inquiry.
According to the banking regulator, cryptocurrency trading takes place on virtual platforms like crypto exchanges in other countries without being regulated by Pakistani authorities.
As a result, it is impossible to determine the cryptocurrency sales and purchases made by Pakistanis.
The effect of such transactions on the national economy cannot be ascertained, claims SBP, because there is no central database of information on the selling and purchase of crypto-currencies.
To read our blog on “Crypto legalized in China for small transactions from 7 May,” click here.
