crypto ban in Pakistan

In recent news, Pakistan’s Minister of State for Finance and Revenue, Aisha Ghaus Pasha, made statements regarding to the crypto ban in pakistan, suggesting that cryptocurrency legalization in the country may be off the table. The motivation behind this decision is speculated to be Pakistan’s desire to avoid being placed on the Financial Action Task Force’s (FATF) “grey list,” which subjects nations to increased monitoring due to strategic deficiencies in combating money laundering and terrorist financing.

Pasha’s remarks have been interpreted as a potential ban on cryptocurrencies in Pakistan, a move that comes at a time when the nation’s economy is already facing challenges amidst a volatile political climate. Furthermore, she reportedly instructed authorities to begin the process of prohibiting cryptocurrencies altogether.

The FATF, on the other hand, emphasizes the importance of countries understanding the risks associated with money laundering and terrorist financing in the crypto sector. The organization requires virtual asset service providers to implement measures similar to those used by traditional financial institutions, such as customer due diligence, record keeping, reporting of suspicious transactions, and compliance with the travel rule, which mandates the collection and sharing of transaction information above a certain threshold.

While the FATF did not directly respond to Pasha’s statements, it clarified that countries have the discretion to prohibit virtual assets and virtual asset service providers, but it is not a mandatory requirement.

Moreover, since the country is going through the financial crisis so the steps are being taken against the crypto enthusiasts and the reason given to the media is that the country cannot afford any remaining dollars to be laundered out of the state in the form of Cryptocurrency.

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