Last week Indian central bank announced its decision to take a hardline stance on cryptocurrencies in the country, saying that all accounts, dealing with cyber money, won’t be provided service by the bank.
On April 6, one of the closest India’s neighbors – Pakistan – notifies about its clampdown on cryptos. In particular, the state’s central bank requires financial institutions and services in Pakistan to stop supporting cyber money transactions. Moreover, it prohibits to send funds abroad using virtual money.
The respective information was published by the top Pakistani bank (SBP) on its site as well as in the microblog on Twitter. In the statements, the bank emphasized that these rules can be applied both to internal and external payment remittance services.
CAUTION REGARDING RISKS OF VIRTUAL CURRENCIES General Public is advised that domestic and international payment and money transfer services in Pakistan are regulated by SBP under the applicable laws. English: https://t.co/FbLXO1Mr5s Urdu: https://t.co/Ft2aZgAznn— SBP (@StateBank_Pak) April 6, 2018
This announcement came after India’s bank told all the users to stop having any ties with crypto dealers. Therefore, the prices of cyber assets went down on local crypto bourses.
Remittances Could Lead To Charge
This warning from the Pakistani central bank is not as simple as mere governmental recommendations in some countries. Instead, everybody who does not comply with the official requirements might be prosecuted, as per Propakistani. This strict notion can be related only to those people, who use cyber-coins as well as tokens to remit money externally – out of Pakistan.
But that’s not all. The central bank of this country also turned to commercial financial institutions and payment services, asking them not to push forward transactions by account users in the form of cyber assets or ICO tokens.
At the same time, SBP emphasized it has not acknowledged that digital coins can be treated as legal tender. Furthermore, it added that it has allowed neither bodies nor entities to emit, vend, buy, exchange or pile into cyber-coins and tokens.
Why Pakistan Gets Tough On Cryptos?
The decision by SBP was made due to several endangering factors, among which are:
- The volatility of digital currencies, and their dependence on speculation.
- The collapse as well as the shutdown of cyber money trading venues without any vivid causes, e.g., the influence of the police and so on.
- The experience of world crypto bourses and wallet providers, which suffered from cyber-attacks, breaches of users’ personal information, and the resulting deprivation and outflow of clients’ funds.
- The popularity of fraudulent schemes, which function according to the model of the pyramid and promise users huge revenues in a short-term perspective.
The time will tell how crypto enthusiasts will react to the news, while in India people already gathered over 17 thousand signatures in the petition against India’s central bank crackdown decision.