Virtual currency declared illegal in Pakistan

KARACHI – State Bank of Pakistan (SBP) on Friday declared Virtual Currencies like Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond etc illegal in Pakistan.

In a statemnet issued on Friday, the central bank avised the general public that domestic and international payment and money transfer services in Pakistan are regulated by SBP under the applicable laws. In this regard, no entity is currently licensed or authorized by SBP to offer money remittance services and products in Pakistan using Virtual Currencies, Coins and Tokens.

It further directed the Banks, DFIs, Microfinance Banks and Payment System Operators (PSOs), Payment Service Providers (PSPs) not to facilitate their customers/account holders to transact in Virtual Currencies.

It further warned that persons using virtual currencies for the purpose of transferring value outside Pakistan are subject to prosecution as per applicable laws.

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