Crypto trading still banned in Pakistan, proper legal framework needed: SBP, Finance Ministry

ISLAMABAD: The government has clearly said that cryptocurrency trading is still not allowed in Pakistan. Officials from the State Bank of Pakistan (SBP) and the Ministry of Finance told lawmakers that there is no legal system in place to allow or control digital currencies in the country. 

During a meeting of the National Assembly’s Standing Committee on Finance, both institutions explained that virtual currencies are not officially accepted in Pakistan. The SBP said it had already told banks back in 2018 not to allow or support any crypto-related transactions. 

This update came as many people in Pakistan have started believing that the government is now supporting cryptocurrencies. MNA Mirza Ikhtiar Baig highlighted this misunderstanding and said it’s causing people to invest in crypto without knowing the legal risks. 

Officials from the Finance Ministry said that while digital currencies are becoming popular worldwide, Pakistan has not changed its position. They said a proper law is needed first, and any future steps will be taken carefully. 

To study the matter further, the government has set up the Pakistan Crypto Council (PCC). This group includes members from the SBP, the Securities and Exchange Commission of Pakistan (SECP) and the Finance Ministry. The Council is looking into whether digital currencies can be allowed in a safe and controlled way. 

Meanwhile, financial institutions in Pakistan have been told not to deal in cryptocurrencies. This means they cannot help customers buy, sell, or trade digital currencies. If they see such activities, they must report them as suspicious. 

Officials said the ban is due to many risks. These include the high chance of losing money because of price changes, scams, hacking, and the risk that crypto could be used for illegal activities like money laundering or funding terrorism. 

A separate group led by the Federal Investigation Agency (FIA) is also working on the issue. They are studying how to make rules that can protect people and the financial system. 

Officials stressed that Pakistan’s current laws already match international rules on financial safety. But any future decision on allowing cryptocurrency will be taken slowly and carefully, keeping Pakistan’s financial security in mind. 

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