Is Pakistan headed towards a crypto ban post multi-million dollar scam?

Sahana Kiran
Source – Unsplash

While the entire globe had just started embracing the crypto-verse, Pakistan went right ahead for a ban on the market. The government was already rooting for a ban. The latest mishap with Binance being involved in a multi-million dollar scam is speculated to have driven the government towards a complete ban on crypto.

The crypto-verse had a long and tough haul. Its association with the dark web hindered the industry’s growth. While the crypto market transpired to emerge as a trillion-dollar market, governments all across the globe began recognizing cryptocurrencies. A few countries decided to take extra precautions and have rolled out regulations in light of the same. Just as Pakistan was going for the same thing, it decided to impose a ban instead.

Back in October 2021, the Sindh High Court gave the government a period of three months to regulate the crypto market. In light of the same, the government set up a committee to look into the legal status of cryptocurrencies. This committee had an array of authorities including the federal secretary of finance.

After months of research, the committee presented a 38-page report suggesting that cryptocurrencies were illegal. Risks pertaining to the industry were part of the report.

Pakistan to declare crypto as illegal?

No official statement has been made by the government affirming the ban of these assets. The report was ordered to be sent to finance and law ministries for a final decision pertaining to the legality of cryptocurrencies.

Furthermore, the chances of the report being considered legit were high following the recent crypto scam. Pakistan Federal Investigation Agency [FIA], sent out a notice to prominent cryptocurrency exchange, Binance for being involved in a multi-million dollar scam. This was undoubtedly a setback for those trying to negate the ban on crypto.

While an extensive number of Pakistan citizens have been using cryptocurrencies, the committee wanted to kick out all things crypto from the country. Pakistan seemed to be walking in the footsteps of China and other countries that have banned the face of crypto in their region.