Panel Formed by Sindh High Court Wants Ban on Cryptocurrencies
A three-member bench of the apex court headed by Justice Umer Ata Bandial and Justice Ijazul Ahsen has recommended that the State Bank of Pakistan ban cryptocurrencies. The apex court said that the risks outweighed the profits. The panel said that people should not invest in cryptocurrencies for the short-term capital gains. Otherwise, they might lose their money, drain the foreign exchange reserves, and transfer funds illegally from the state. The committee also wanted to regulate the tampering with cryptocurrencies. It also called for the closure of exchanges such as Binance and OctaFx in the country.
The panel that was formed by the Sindh Excessive Courtroom urged the government to ban cryptocurrency, calling for strict regulation. The ruling was the first of its kind for cryptocurrencies. However, it came too late to halt the influx of bitcoins into the Pakistani economy. In May 2018, the Central Bank banned cryptocurrencies as a result of a global fraud involving US $ 100 million. In December 2017, the Sindh High Court ordered the Pakistani State Bank to set up a fraud committee comprising the Securities and Exchange Commission, Ministry of Finance, Ministry of Information Technology, and Telecommunication Authority. The panel asked for the experts’ opinion on whether or not digital currency should be banned in the country.
The recommendation is based on the findings of a study commissioned by the SHC. It was found that cryptocurrency was largely speculative, and the use of such currency in Pakistan could lead to the flight of valuable international change and the switching of illicit funds. The SHC’s report suggested that cryptocurrency exchanges be BANKED, and those involved in cryptocurrency transactions should be penalized. The panel will consider the recommendations of the advisory group’s recommendations.
After the Sindh High Court rejected the appeal, the DRAP has held talks with the industry groups and wants a final policy on the pricing of cryptocurrencies. The panel will make a final decision regarding this in due course. The current situation has been criticized by multinational companies and pharmaceutical companies, which have been unable to gain access to the market in Pakistan. The current situation has led to many companies leaving Pakistan to avoid the aforementioned restrictions.
A two-judge bench headed by Justice Mohammad Karim Khan Agha has recommended a complete ban on digital currency in the country. The panel is also calling for the creation of a regulatory framework for regulated cryptocurrencies in Pakistan. The recommendation has prompted concern among the industry. The DRAP aims to appoint a full-time executive. The DRAP has said that the current system is dependent on interim agreements and that this is not a sustainable situation.
Earlier, the Advisory Group had recommended that the State Bank of Pakistan ban cryptocurrency. The group consisted of a representative of the swiss regulator, the Securities and Exchange Commission of Pakistan, the PTA, and the Financial Monitoring Unit. The panel’s recommendation was rejected because it was not in the best interest of the country. Moreover, the PTA had a mandate to review the policy and to ensure that the regulations are followed by the law.
The panel will also meet with the Sindh government to get a detailed report on the law and order situation in Larkana and Sindh. The decision will determine whether the PCB has the legal authority to ban digital currency in the province. If it does, the DRAP will invite the widow of Nazim Jokhio for the next meeting. The Advisory Group is also seeking a comprehensive report on the law and order situation in the province.
The PCB wants to ban cryptocurrency in the country. The panel will be responsible for reviewing the existing regulations to make sure that it protects the interests of consumers. The ruling is the final word on the matter. The decision could affect the economy of the country. It could have a major impact on the price of goods. The government will have to decide on whether or not it will regulate it. A successful application will be approved by the PCB.
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