PTA Opposes the Ban on Cryptocurrency Proposed by Various Government Entities

The Pakistan Telecommunications Authority (PTA) has voiced concerns over the decision to ban cryptocurrency in Pakistan. The State Bank of Pakistan (SBP), the Securities and Exchange Commission of Pakistan (SECP), and the Ministry of Information Technology and Telecommunications had previously asked for a total ban on crypto-based transactions.

According to the PTA, such a step could have an impact on a number of other related technologies as well as the advancement of IT start-ups. Meanwhile, the law ministry, although demanding a legitimate reason for banning crypto-currencies, said that it could assist in the development of a legal framework for regulating cryptocurrency trading in the country.

PTA Opposes the Ban on Cryptocurrency Proposed by Various Government Entities

The government has decided to ask the Sindh High Court (SHC) for at least three months to draft and submit joint recommendations from the Ministries of Finance and Law regarding the regulation of cryptocurrencies.

The decision was reached at the second meeting, which was led by the finance secretary, concerning the difficulties encountered in developing policy recommendations on cryptocurrencies in response to the Sindh High Court’s directives.

The conference discussed “whether cryptocurrencies should be allowed in the country in any form or not,” according to a source. During the discussion, the additional finance secretary provided background information on the case and briefed the attendees of a study completed by a sub-group.

The central bank, the SECP, and the Ministry of Information Technology and Telecommunication proposed a ban on crypto business during the meeting, claiming that allowing it would lead to capital flight, money laundering, and terrorism financing, as well as raising concerns for the Financial Action Task Force (FATF).

“Due to a lack of legal framework, cryptocurrency business should be banned in the country,” they stated.

Meanwhile, executives from the Pakistan Telecommunications Authority (PTA) stated that banning cryptocurrencies in Pakistan would be difficult “since a comprehensive ban on crypto transactions is not conceivable.”

Furthermore, PTA said,

Though well-known websites and exchanges can be geo-blocked, users can bypass the digital barricades through the use of VPNs and proxy servers. Moreover, a great amount of cryptocurrency transactions were being facilitated through online social platforms which cannot be completely blocked.

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