The State Bank of Pakistan (SBP) and the finance ministry made it clear that all crypto transactions are still illegal under existing laws, which created confusion for lawmakers and investors. Even while Pakistan’s highest crypto official signed an agreement with the crypto company associated with the Donald Trump family, the nation’s central bank and the finance ministry made it clear that the digital currency is still “banned”.
In a ‘strategic’ move that is being praised, Pakistan Crypto Council CEO Bilal Bin Saqib on Wednesday (May 28) launched the nation’s first government-supported Strategic Bitcoin reserve. The council in April also signed an agreement with crypto company World Liberty Financial Inc (WLFI), whose majority stakes are owned by Trump’s sons.
But on Thursday (May 29), the State Bank of Pakistan (SBP) and finance ministry clarified that all transactions made via cryptocurrency are illegal under existing laws, causing lawmakers’ confusion.
There will be a legal structure only if the government officially makes a decision, but the present legal position is that crypto is not a legal tender in Pakistan,” Finance Secretary Imdadullah Bosal stated during a National Assembly Standing Committee on Finance and Revenue meeting.
The standing committee voiced fears of confusion within the government strategy. It pointed out how individuals were being asked to invest in crypto assets while the digital currency was still prohibited, leaving investors in a dilemma. Committee member Mohammad Mobeen also wondered why the government had taken up the crypto issues instead of the SBP.
He also pointed to policy inconsistency, explaining that the government had provided power capacity for mining activities even while the cryptocurrency was illegal. Significantly, another member Shahram Tarakai cautioned that the foreign exchange of the country could drain out of Pakistan through crypto, destabilizing the cash-starved economy even further.
The involvement of the private sector and illegal hawala networks was also a cause of concern. As per reports from the media, Pakistan’s Financial Monitoring Unit (FMU) continued to pursue crypto cases and forward them to law enforcement agencies for appropriate action.
The committee also questioned the absence of global acceptance of the cryptocurrency, pointing out how El Salvador was the sole nation with legalised cryptocurrency in the world, and even that country was reconsidering the move.
