The State Bank of Pakistan is concerned about the use of digital currencies in crime, with a recent Binance-linked $100 million scam being cited as an example.
Over 30,000 investors were reportedly tricked into opening Binance accounts and transferring their digital assets to scammers, and the exchange is being investigated for its role.
The High Court of Sindh has ordered the gov’t to formulate regulations for the digital currency industry in response to a petition challenging an earlier ban.
The Sindh High Court in Pakistan has heard a petition filed in opposition to a nationwide ban on cryptocurrencies, giving fresh insight into the legal position for digital assets in the country.
The State Bank has not outlawed digital currency in Pakistan despite claims to the contrary, according to a lawyer for the country’s central bank.
The South Asian country intends to issue a state-backed digital currency by the year 2025 to bring more inclusion and reduce inefficiencies in their monetary system.
Although the State Bank of Pakistan has banned commercial banks, financial firms and traders from operating in cryptocurrencies, some are finding ways and means of circumventing this ban.