State Bank Pakistan Has No Information on Pakistani Cryptocurrency Trading

An official document acquitted by ProPakistani discloses that the State Bank of Pakistan (SBP) has told the higher authorities that it does not store any data regarding cryptocurrencies bought or sold by Pakistanis.

The SBP claims that no entity in Pakistan is in charge of overseeing cryptocurrency exchanges, which are situated in foreign jurisdictions.

The SBP has not authorized or licensed any person or company for the issuance, sale, acquisition, exchange, or investment in any such virtual currencies, coins, or tokens in Pakistan because, according to the central bank, they are not Legal Tender, issued, or guaranteed by the Government of Pakistan.

The SBP has forbidden its regulated entities from processing, utilizing, trading, holding, transferring value, promoting, and investing in cryptocurrency, the Document claims. The SBP has ordered its regulated firms to forbid assisting their clients in making transactions in virtual money or tokens.

According to the 2010 Anti-Money Laundering Act, regulated companies are required to submit a Suspicious Transaction Report to the Financial Monitoring Unit (FMU) for further inquiry.

The activity of sale and purchase of cryptocurrencies by Pakistani citizens cannot be determined, according to the banking regulator, because cryptocurrencies are traded on virtual platforms like crypto exchanges situated in foreign countries and not supervised by any authority in Pakistan.

The effect of such transactions on the national economy cannot be ascertained, claims SBP, because there is no central database of information on the selling and purchase of crypto-currencies.