Bringing clarity on the use of cryptocurrency in the country, Federal Minister for Information Fawad Chaudhry said that there are no chances of Pakistan legalizing digital currency anytime soon.
“There are no guarantees behind the currency and we cannot allow the use of any digital currency just on the basis of its trust level in the market,” he said.
While citing another reason behind not allowing the use of crypto in the country, Fawad Chaudhry said that the level of fluctuation in the cryptocurrency is unprecedented globally.
“We are also bound through FATF conditions to refrain from allowing any such mode of payment in the country,” he said. The information minister, however, added that ultimately the world has to move towards the mechanism of digital payments.
In 2018, the State Bank of Pakistan (SBP) warned the commercial banks and general banks against the use of cryptocurrencies like Bitcoin or Litecoin.
According to a notice issued by the central bank, cryptocurrencies like Bitcoin, Litecoin, Pakcoin. OneCoin, DasCoin and Pay Diamond are neither recognized as a Legal Tender nor has SBP authorized or licensed any individual or entity for the issuance, sale, purchase, exchange, or investment in any such virtual currencies or tokens in Pakistan.
“Banks/DFIs/Microfinance Banks and Payment System Operators (PSOs)/ Payment Service Providers (PSPs) have been advised not to facilitate their customers/account holders to transact in virtual currencies,” reads a notice issued by the central bank.
The notice warns general public that cryptocurrencies and tokens provide high degree of anonymity and potentially can be used for facilitating illegal activities and no legal protection or recourse is available to any individual in the event of a loss incurred due to failure or closure of virtual currency exchanges or security compromises of cryptocurrency exchanges and wallet businesses.