State Bank of Pakistan bans cryptocurrencies

[Geek]

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KARACHI: In a major development, the State Bank of Pakistan (SBP) has banned cryptocurrencies in the country.


While the volume of trading remains on the lower side in Pakistan, Bitcoin’s phenomenal rise in value during 2017 has tempted many to open accounts with various exchanges and trade.


Its acceptance at the merchant level in the country is negligible, but many users – at an individual level – are tempted to trade given cryptocurrencies’ spectacular rally in recent times.
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However, in a circular issued on its website, the central bank said that virtual currencies like Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond or Initial Coin Offerings (ICO) tokens are not legal tender, issued or guaranteed by the Pakistan government.


“The 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 said in the statement.


“All banks, development financial institutions, microfinance banks and payment system operators, payment service providers are advised to refrain from processing, using, trading, holding, transferring value, promoting and investing in virtual currencies/tokens.


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“Further, they will not facilitate their customers/account holders to transact in VCs/ICO Tokens. Any transaction in this regard shall immediately be reported to the Financial Monitoring Unit (FMU) as a suspicious transaction,” added the SBP in the statement.


Bitcoin is currently priced at $6,643.26, a fall of close to 66% since it hit a high of near $19,780 in December last year. Its current market capitalisation stands at $112.7 billion.


Source

 

[Iconoclast]

That's because they do not understand the concept of cryptocurrencies.

 

[The Revolutionist]

The dumb @rses and ignorant piece of sh!t who are sitting in the state banks and in the other banks of Pakistan do not even know the difference between the first name and surname,forget about they would understand cryptocurriencies.

The banking system all over the word and in Pakistan which is based on interest is also responsible for making poor more poor and richer more richer.This banking system would never like the idea of crytpocurrencies because Crypotcurrencies are the biggest threat to the current global financial monopoly of few people. These people are looting and making people financial slaves in the name of mortgages,loans and credit cards.

 

[Iconoclast]

The dumb @rses and ignorant piece of sh!t who are sitting in the state banks and in the other banks of Pakistan do not even know the difference between the first name and surname,forget about they would understand cryptocurriencies.

The banking system all over the word and in Pakistan which is based on interest is also responsible for making poor more poor and richer more richer.This banking system would never like the idea of crytpocurrencies because Crypotcurrencies are the biggest threat to the current global financial monopoly of few people. These people are looting and making people financial slaves in the name of mortgages,loans and credit cards.

All backed by thin air as USD isn't backed by gold anymore but "trust" in a private entity cleverly named Federal Reserve Bank.

 

[Asad Mujtaba]

LOL this will have zero effect on the market

 

[kwan225]

You never know, could be a free fall for bitcoin. [hilar]

LOL this will have zero effect on the market

 

[kaka1]

Pakistan Bars Banks from Crypto and ICO Trading

Urdubit, a cryptocurrency exchange that first launched in 2014 with the goal of building a base of support in the region, said in the wake of the statement that it will shut down. Urdubit was the first bitcoin exchange platform to open its doors in the country.

The decision was announced via Facebook, with the startup urging its customers to "please withdraw your funds as soon as possible."

Urdubit's Facebook post included a link to correspondence from the central bank, which including the warning about transactions being tagged as suspicious.

Speaking to CoinDesk, Rodrigo Souza, the co-founder of BlinkTrade (which provided the open-source software that Urdubit has used) argued that the central bank move is aimed at putting the brakes on cryptocurrency investment.

"Governments and Banks are going to fight Bitcoin because investing Bitcoin means a bank run on the central bank," he said, going on to add:

"We are working hard to return all PKR to all our customers before our bank shutdown our accounts."

The move comes a day after India's central bank blocked banks from doing business with cryptocurrency exchanges. But as CoinDesk subsequently reported, exchanges in that country are eyeing a legal challenge that could see the dispute argued before India's highest court.

Pakistani rupee image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
http://https://www.coindesk.com/pakistan-bars-banks-crypto-ico-trading/

 

[iqra6500]

Wrong decision. State bank ko pehly bitcoin k bary mein janna to chaiye tha.