SBP prohibits financial sector from dealing in cryptocurrencies, says it will take action on violations

State Bank of Pakistan (SBP) on Friday declared that virtual and cryptocurrencies are not legal tender in Pakistan and ordered the financial sector to not process their payments.

In a notification sent to the presidents and CEOs of all the banks, development finance institution and payment service providers in Pakistan, the SBP stated: "Virtual Currencies (VCs) like Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond etc or Initial Coin Offerings (ICO) tokens are not legal tender, issued or guaranteed by the Government of Pakistan."

"SBP has not authorised or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such Virtual Currencies/Coins/Tokens in Pakistan," it added.

The central bank prohibited the banks "from processing, using, trading, holding, transferring value, promoting and investing in Virtual Currencies/Tokens" and also instructed them to not facilitate any such transactions of their customers.

SBP also directed the country's financial institutions to treat virtual currency transactions as suspicious and immediately report them to the Financial Monitoring Unit.

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Comments (14) Closed

Haider Abbas

Apr 07, 2018 02:16am

Finally, this immoral currency is being banned . Exhausting natural resources to generate virtual currency should be treated as criminal negligence.

Recommend 0

elle

Apr 07, 2018 02:23am

so what about those margin account for bitcoin opening at 19 lakh and promises to double your money.it can't be that hard blocking all money transfer to bitcoin exchanges. In Australia, major banks suspend your accounts monent you transfer money to bitcoin exchange.

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Fnews

Apr 07, 2018 02:32am

now ur inspector gadget will be exposed!

Recommend 0

Hassan (Karachi)

Apr 07, 2018 02:54am

Localbitcoins.com is already functioning in Pakistan already, does SBP want to declare it illegal?

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Najum

Apr 07, 2018 04:11am

Regulate them. Don't ban them.

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Sameer

Apr 07, 2018 04:17am

Amnesty for the corrupt is okay but bitcoin is not. Pakistan is tranforming in to a dictatorship under civil rule. Maybe the corrupt got left behind in making money off bitcoin and want to create hurdles for the people rising on the bitcoin tide. Only the ignorant find bitcoin a threat.

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Alba

Apr 07, 2018 04:19am

Crypto-Currencies are strictly speculative. They are not backed by any assets. People can get hurt.

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zafars

Apr 07, 2018 05:53am

SBP is being naive. Crypto curencies do not require anyone's permission to operate.

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global citizen

Apr 07, 2018 06:01am

as if they have the technology to stop it!

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Ayesha Sadozai

Apr 07, 2018 06:55am

Good step. SBP must also ensure, please, that we don't become a totally cashless 'e banking' society. That has many risks and dangers. If any enemy hacks our online systems, or in any other major emergency, people must always have access to physical notes and coins of the national currency.

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Waqar

Apr 07, 2018 07:54am

SBP has taken the right decision.

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Pavel Durov

Apr 07, 2018 08:41am

Do pakistanis even know what crypto currencies are?

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SHAHID SATTAR

Apr 07, 2018 09:04am

Waking up too late, as usual. True Pakistani way.

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A Khan

Apr 08, 2018 02:37am

Crypto currencies are a threat to all fiat currencies . True these are unregulated and that is why the conventional financial system feels theeatened.

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