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.
Comments (14) Closed
Finally, this immoral currency is being banned . Exhausting natural resources to generate virtual currency should be treated as criminal negligence.
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.
now ur inspector gadget will be exposed!
Localbitcoins.com is already functioning in Pakistan already, does SBP want to declare it illegal?
Regulate them. Don't ban them.
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.
Crypto-Currencies are strictly speculative. They are not backed by any assets. People can get hurt.
SBP is being naive. Crypto curencies do not require anyone's permission to operate.
as if they have the technology to stop it!
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.
SBP has taken the right decision.
Do pakistanis even know what crypto currencies are?
Waking up too late, as usual. True Pakistani way.
Crypto currencies are a threat to all fiat currencies . True these are unregulated and that is why the conventional financial system feels theeatened.