A Pakistani High Court Challenges the Proposed Cryptocurrency Ban
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Countries such as Pakistan have already imposed a ban on Bitcoin that has now been in place for two years. Things are set to take a turn for the better, however, after a high court has challenged the decision.
The 2018 Ban
The ban on Bitcoin and cryptocurrencies took place in 2018. It was imposed by the Pakistani Central Bank and disappointed every crypto owner in the country. The circular issued in 2018 prohibited the dealing of virtual tokens and currencies, with all banks and financial institutions to refrain from using them or rendering services involving cryptos.
At the same time, all crypto tokens were rendered illegal tender, with all crypto transactions deemed suspicious. To put it simply, it was a devastating blow on crypto owners and traders and closed the door on industries such as Bitcoin gambling.
Two years later, though, things might be changing. A high court from the province of Sindh has officially moved to question the central bank’s decision. It has requested the Federal Investigation Agency and the State Bank of Pakistan to reply to a detailed inquiry on the ban, hoping for a positive outcome.
SBP’s ban came when the neighboring central bank of India used similar measures to ban cryptocurrencies. The moves were widely criticized by both Indians and Pakistanis, who still traded cryptos despite the ban. They might not have to do it illegally anymore if the Sindh high court makes a breakthrough with the inquiry.
Why Ban Bitcoin Now?
The Sindh high court asked the Central Pakistani Bank a simple question – why ban Bitcoin now when it’s used globally? The number of countries supporting the use of cryptos and officially recognizing Bitcoin is on the rise. There’s no point in imposing a ban when Bitcoin has shown that it can be of great use, especially during these pandemic times.
In a time when fiat currencies and royals are failing, Bitcoin’s price has been pretty stable. It is on the upside as well, making many countries and governments rethink their anti-Bitcoin efforts. The high court is hoping that the government and Central Bank will overturn the decision and allow Bitcoin to thrive in the country.
As soon as it does, thriving new industries will surely appear. Offshore Bitcoin gambling operators may be allowed, giving Pakistani gamblers a chance to make some BTC online. Other industries will surely benefit from Bitcoin’s official recognition.
Crypto traders in Pakistan are hoping that their prayers will be heard. The Indian Supreme court overturned the 2018 ban on cryptos this year and if history repeats itself, the same will happen in Pakistan too.
