Should investors worry about Pakistan’s crypto ban?

Pakistan has become the latest country to consider banning cryptocurrency. As the world increasingly stares at the time when cryptocurrencies will be regulated in the near future, Pakistan, for now, is very happy to keep both blanket ban options as well as crypto regulations open, keeping investors on the edge of their seats.

According to a document filed with the High Court of Sindh, the Securities and Exchange Commission of Pakistan (SECP) and the Federal Investigation Agency of Pakistan (FIA) along with the State Bank of Pakistan (SBP) feel that cryptocurrencies can bring an element of risk and can be used for illegal purposes.

Read also: Why are cryptocurrency investors attracted to Hasbulla?

The status of cryptocurrencies has been in limbo for some time now mainly due to the lack of proper regulations in the country. But recently, there has been a flurry of activity within the nation, after which the SECP makes sure to eliminate the possibility of using cryptocurrencies in the country.

According to the Chainalysis Global Crypto Adoption Index, Pakistan happens to be the third highest crypto adoption country, and this news will severely impact the crypto environment in the country.

Recently, Pakistani authorities launched a full investigation against the world’s largest exchange Binance for an alleged $100 million scam. Fraudulent applications such as HFC, MCX, etc. allegedly deceived millions of Pakistani investors. The Pakistani authorities took the matter into their own hands and sent a notice to Binance asking for an explanation.

Read also: Have Dogecoin Bulls Outperformed the Bears Challenge?

Clarity for the first time

It is assumed that for the first time such a position on cryptocurrency has been taken by the Central Bank. In fact, the SECP issued a notice in 2018, prohibiting banks from dealing with cryptocurrency exchanges operating in the country.

Many prominent industry members believe that the general tendency of the authorities is to resort to a blanket ban, but here a blanket ban may not solve the problem. Many believe that regulation can bring some kind of similarity and that cryptocurrencies can coexist alongside the traditional method of payment.

Read also: What is the Goldfinch Token (GFI)? Why go up?

Pakistan is not alone

In 2021, the People’s Bank of China (PBOC) banned all forms of crypto-related activities in the country stating that they would not be part of the payment system and the likes of Bitcoin, Ethereum, etc. could not be traded in a market. Later, the Chinese Economic Planning Agency began to dispose of crypto mining companies, after which many mining companies were forced to leave the country in search of greener pastures. This had a disastrous effect on the crypto market and was one of the main reasons for the cryptocurrency crash in September.

Later in November, the head of Sharia compliance at the world’s largest Muslim population said that Muslims in Indonesia could not trade in cryptocurrency.

conclusion

Well, the crypto policies in Pakistan in the next few weeks will definitely be crucial for the entire crypto market. Whether Pakistan bans or regulates cryptocurrencies, it will surely affect the global crypto market given that Pakistan is one of the major markets for crypto adoption.

Overall, it is important for the Pakistani government and financial system to decide on regulations in an effort to protect the interests of investors.

.