According to cointelegraph’s recent report, the Senate Standing Committee on Finance and Revenue, Pakistan’s Minister of State for Finance and Revenue, Aisha Ghaus Pasha, announced that the country would ban cryptocurrency services and never legalize crypto trading. Several local media reports confirmed the statement, and it was supported by other officials, including Sohail Jawad, Director of the State Bank of Pakistan (SBP).
Minister Pasha emphasized that the decision to ban crypto was a requirement set by the Financial Action Task Force (FATF), an international body that removed Pakistan from its gray list in October. The gray list includes countries considered deficient in Anti-Money Laundering and Counter-Terrorist Financing measures but are actively collaborating with the FATF to rectify the issues.
Reports suggest that the SBP, in collaboration with the Ministry of Information and Technology, is currently drafting the legislation to implement the ban.
The Pakistani Crypto Twitter community expressed strong disapproval of the upcoming crypto ban. Many users argued that the government should focus on addressing scams and fraudulent applications rather than banning cryptocurrencies. They also highlighted that crypto trading has provided a source of income for many individuals, especially the economically disadvantaged in Pakistan.
While the FATF cannot impose sanctions on non-compliant countries, its evaluations often influence government and corporate policies worldwide. As Pakistan’s economy is facing significant challenges and the country is engaged in tense bailout negotiations with the International Monetary Fund, receiving a favorable report from the FATF may hold political importance.
Despite the impending ban, cryptocurrency adoption in Pakistan has been relatively high, with reports indicating that Pakistani citizens held approximately $20 billion worth of crypto in 2021. It is worth noting that the SBP has been seeking a ban on crypto since at least January. However, Pakistan has plans to launch its own central bank digital currency in 2025 and has recently implemented a national blockchain-based Know Your Customer platform.
