PTA Resists Ban On Cryptocurrencies

Pakistan Telecommunications Authority (PTA) expressed concern over the decision to ban cryptocurrency trading in the country.

In a high-level meeting, the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), and the Ministry of Information Technology and Telecommunication had proposed a ban on crypto-based transactions.

According to the PTA, such a measure may adversely affect several other associated technologies as well as the progress of IT startups. Meanwhile, the law ministry, while demanding a valid reason for banning crypto-currencies, stated it could assist in developing a legal framework to regulate or ban the trade of digital coins in the country.

SECP and the Ministry of Information Technology and Telecommunication proposed a ban on crypto business and maintained that its permission could lead to capital flight, money laundering, and terrorism financing besides raising concerns for Financial Action Task Force (FATF).

“Cryptocurrency business should be banned in the country due to lack of legal framework,” they said.

Meanwhile, representatives from PTA maintained that banning cryptocurrencies in Pakistan would be an issue “as it is not possible to impose a complete ban on crypto trading.”

PTA said that a great amount of cryptocurrency transactions were being facilitated through online social platforms which cannot be completely blocked.