A financially unstable country, Pakistan was, until recently, on the gray list of the Financial Action Task Force (FATF). To remove it, this intergovernmental organization has imposed on the country not to authorize the trading of cryptos on its territory. The authorities decided to comply. A choice contested by many Pakistanis.
Pakistan to Ban Cryptos to Please FATF
Crypto trading will not be allowed in Pakistan. This is the announcement made by Aisha Ghaus Pasha, the country’s financier. The decision, backed by several politicians, implies that a legally established crypto market is not expected to emerge in Pakistan.
However, this choice is rather paradoxical.. Especially since a market, although unofficial, exists in the country. But presumably, the decision does not come from a clearly intended and deliberately implemented policy.
The declarations of Pasha, the Minister of Finance, are moreover explicit on this subject. The decision to ban crypto trading in Pakistan is driven by external constraints. Particularly those of the Financial Action Task Force (FATF).
You should know that this intergovernmental organization aims to fight against money laundering and the financing of terrorism. For a long time, Pakistan was labeled as one of the terrorist financing hubs in the world.
This label, the FATF withdrew it in the country in October 2022. A decision conditioned on Pakistan’s commitment not to legalize the trade of cryptos on its soil. Cryptos are known as one of the most effective ways to finance illicit acts.
If this decision can therefore be explained at first sight, it sweeps away the usefulness of cryptos for many Pakistanis. Several of them criticize this choice, which deprives them of the alternative they represent, in the face of the crisis.
“People are making a lot of money trading cryptocurrency and the government wants to take away that last hope from the poor people of Pakistan”complains the Crypto Arena tweet.
Nevertheless, cryptos have relatively gained momentum in the country in recent months. In 2021, it would be some 20 billion dollars of cryptos that would be held by Pakistani citizens.
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