Islamabad: Pakistani Central Bank Panel has recommended a complete ban on the Cryptocurrency and other related activities in the country, according to a media report on Thursday, the days after the top trial ordered the probe into US $ 100 million in digital currency fraud.
After fraud became public, the Sindh High Court (SHC) directed the state bank Pakistan (SBP) to form a committee under the Deputy Governor of Bank to investigate fraud.
Other panel members come from the Ministry of Finance, Information-Technology, Telecommunications Authority, and Security Commission and Exchange.
The court sought the opinion of the committee about whether all forms of cryptocurrency can be permitted based on Pakistani law, international news reported.
In his report, the committee suggested a complete ban on all cryptocurrency and other related activities in the country.
Based on risk-benefit analysis, it was revealed that the risk of cryptocurrency “far exceeded” the benefits, newspapers reported.
The Cryptocurrency committee is traded in speculation, where people can be lived to invest in the increase in short-term capital.
The committee explained that it can lead to valuable foreign exchange reserve flights, and the transfer of prohibited funds from the country.
The committee said there must be an invalid cryptocurrency operation ban, which states that exchanges such as binance, OctaFX, among other things, must be prohibited for their unauthorized operation, while proportional and distual punishments must be imposed on them.
Meanwhile, a Petitioner at the SHC opposed recommendations.
The SHC division bench, which was headed by Justice Mohammad Karim Khan Agha, directed the committee to send a copy of the report to the Ministry of Finance and the Ministry of Law.
The ministry will consider the same thing at a joint meeting and reach the final decision whether Cryptocurrency, in any form, can be permitted in Pakistan and, if so, what will be the framework of the regulation.
The court directs the Ministry of Finance and the Ministry of Law to make a shared recommendation of whether the Cryptocurrency business in any form can be carried out legally in Pakistan because this also causes difficulties at this time for those involved in IT – following the constant attack of the Federal Investigation Agency and freezing Bank account.
The court directed the Finance Secretary and the Legal Secretary, and other senior officers from the Ministry of Law emerged before and submitted a report on this issue on April 11, according to international reports.
Last week, the Pakistani Federal Investigation Agency detected US $ 100 million (RS 17,587 billion) using Cryptocurrency and issued a notification to local Representatives Binance – the largest Cryptocurrency exchange in the world.