The National Bank of Pakistan and the government have decided to ban all cryptocurrencies.

According to a report submitted to the Sindh High Court (SHC) on Wednesday, Pakistan's central bank and government have decided to ban all cryptocurrencies.

Pakistan's Sindh High Court (SHC) hears digital asset issues. In the past, the CHS has asked the government to regulate cryptocurrencies for three months. The court ordered the government to create an agency by the Secretary of the Treasury to determine the legality of cryptocurrencies.

The status of cryptocurrencies in Pakistan is unclear due to the lack of laws and regulations governing the use of these digital currencies in the market. The court ordered the police to file a report on the use of the cryptocurrency. The report was filed in the Sindh High Court on Wednesday. Cryptocurrencies are illegal and cannot be used commercially, according to the report. The report lists at least 11 countries that have banned cryptocurrencies, including Saudi Arabia. The report also discusses the recent FIA investigation into crypto exchanges such as Binance and OctaFx and the risks of these exchanges for investors.

The Sindh High Court has ordered that an opinion be sent to the Ministry of Finance and Justice for a final decision on the legalization of the cryptocurrency. The law and the Treasury Department will determine whether the cryptocurrency ban falls within the scope of the law. It will also create legitimacy.

Additionally, for the first time, the central bank has achieved the realization of cryptocurrencies, insisting that the CHS not only bans cryptocurrencies, but also imposes penalties on cryptocurrency exchanges. Seema Kamil, vice president of the Central Bank of Pakistan, submitted a 38-page statement on the illegality of cryptocurrencies. The report states that cryptocurrencies are virtual markets that can be used to launder money for money laundering and money laundering.

The court said the FBI and other agencies would abide by their rules for several months until a final decision was made.

Defendant Waqar Zaka is asking the court to legalize the cryptocurrency, as many Pakistanis are in favor. Former Pakistan Chamber of Commerce and Industry (FPCCI) Chairman Nasir Hayat Magoon has revealed that the Pakistani public has $ 20 billion in crypto assets. According to a study published by Chainalysis in October of last year, Pakistan saw a further increase in cryptocurrency adoption compared to the previous year. According to the Chainalysis 2021 Global Cryptocurrency Adoption Index, Pakistan ranks third in the rankings after Vietnam and India.

Yet in December of last year, many investors suffered Rs 10 billion. Pakistan's Federal Bureau of Investigation (FIA) released a report on the Binance cryptocurrency exchange after regularly receiving numerous fraud complaints, identifying the exchange. The scam involves crooks sending money from their Binance wallet to an unknown third party wallet.