Court committee for ban on crypto currency in Pakistan

Court committee for ban on crypto currency in Pakistan

KARACHI: A committee set up by a higher court of Pakistan has recommended complete ban on activities of cryptocurrencies in the country.

The Sindh High Court in a petition constituted a committee on 20th October, 2021 for submitting recommendation on regulating cryptocurrencies in Pakistan. The petition was filed before the higher court seeking regulatory environment for the digital currency in the country.

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The committee submitted its recommendations on Wednesday January 12, 2022. According to the committee, the only use of crypto currency in Pakistan seems to be speculative in nature where people are being enticed to invest in such coins for the purpose of short-term capital gains. The committee further noted that this may result in the flight of precious foreign exchange as well as transfer of illicit funds from the country.

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The court committee further recommended that exchanges like Binance, OctaFX etc. should be banned for their unauthorized operations in the country and proportionate and dissuasive penalties be imposed by the federal government as some other countries have done.

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