According to the country’s finance minister, Pakistan says it will ban crypto and never legalize it in the country. Specifically, the Minister of State for Finance Revenue, Aisha Ghaus Pasha, revealed the country has no plans to reverse its stance on cryptocurrency services.
Speaking at a Senate Standing Committee on Finance and Revenue session on May 16th, Pasha clarified the nation’s perspective. Moreover, it was stated that banning crypto was a requirement of the Financial Action Task Force (FATF). Subsequently, Pakistan was removed from the FATF gray list in October.
Pakistan Bans Cryptocurrency Services
In what is an important development, Pakistan will ban crypto and ensure that it has no plans to legalize it. Moreover, the development has come from the country’s finance minister himself, in a recent conversation with officials.
Moreover, the statement was met with favor from other officials. Among them was State Bank of Pakistan (SBP) director Sohail Jawad. Additionally, the banking of digital assets was listed as a requirement for the country’s removal from the FATF gray list last year.
Specifically, the gray list contains countries that are deficient in anti-money laundering and counter-terrorist finance measures but have addressed ways to reverse these deficiencies. Moreover, the SBP and Information and Technology Ministry were reportedly orchestrating drafts for legislation regarding the ban, reports have stated.
As expected, Pakistan’s crypto community responded with disapproval. Many have urged the government to shift focus from the banning of digital assets to more pressing cybersecurity measures. Moreover, although the FATF cannot impose sanctions on countries that refuse compliance, it can clearly influence governments to take action.
Currently, Pakistan is engaged with the International Monetary Fund (IMF) over bailout negotiations. Specifically, amidst an economic crisis for the country. Subsequently, a favorable report from the FATF could be a political focus for the nation. Especially as it attempts to navigate its predicament.