Pakistan’s official approach to cryptocurrencies is becoming increasingly strict, despite the continued enthusiasm of its citizens seeking a hedge against the national currency’s devaluation given the country’s volatile political climate.

During a meeting with the Senate Standing Committee on Finance, Aisha Ghaus PashaPakistan’s Minister of State for Finance and Revenue reiterated the government’s position against the digital currency phenomenon.

Pascha was quoted He categorically stated that cryptocurrencies “will never be legalized in Pakistan”.

According to Pascha, the strict stance is determined by government requirements Financial Action Task Force (FATF)an international financial watchdog.

By not legalizing cryptocurrencies, Pakistan wants to avoid the FATF’s infamous “grey list”.

Reports suggest so State Bank of Pakistan (SBP), the country’s central bank and the Ministry of Information Technology have been ordered to take action aimed at banning cryptocurrencies.

Earlier last year, the SBP announced its intention to ban cryptocurrencies, marking its first explicit statement on the burgeoning fintech industry.

At the same time, Pakistani banks started warning their customers that cryptocurrency trading was banned.

News from Pakistani financial institutions informs customers that outgoing transfers to foreign crypto trading platforms, be it direct or indirect, are considered risky, illegal and a violation of SBP regulations.

In April 2023, a news report by Pakistani newspaper Dawn highlighted that customers were officially warned against using debit or credit cards for crypto trading.

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Still, the appeal of cryptocurrencies within the country appears to be increasing.

Dawn quoted Zeeshan Ahmedthe general manager of the country Rain Financiala Gulf-based crypto trading platform that reported annual trading volume for Pakistan…