Pakistani Bank Warns Clients Against Cryptocurrencies

Various media recently reported the SMS that the Pakistani bank Alfalah sent to customers, banning them from using cryptocurrency transactions: "Dear Customer, Virtual currencies / coins / tokens, etc. they are not legal tender, issued or guaranteed by the government of Pakistan, and the State Bank of Pakistan (SBP) has not authorized or licensed any individual or entity. Please avoid conducting such transactions from any channels relating to Bank Alfalah ”. Recently, the State Bank of Pakistan (SBP), the country's central bank, filed a cryptographic report with the High Court of Sindh (SHC), the country's supreme judiciary. Soon after, many reports said that Bank Alfalah started texting its customers. The central bank has recommended that cryptocurrencies be declared completely banned and illegal. Following this, the SHC sent the law to finance ministries to review the SBP report and plan a legal framework for cryptocurrencies.

Also recently, there has been a massive scam allegedly of over $ 100 million stolen by Pakistani investors. As a result, the Pakistan Federal Investigation Authority (FIA) recently issued a notice for cryptocurrency exchange Binance. The authority also froze 1,064 bank accounts of customers involved in crypto transactions including Coinbase, Binance and Coinmama. Additionally, ProPakistani, an online blog, reported that due to suspected cryptocurrency transactions, several banks have blocked their customers' credit card transactions. Other banks in the country also froze the accounts of clients using Binance's P2P market. Bank Alfalah was formed in 1992, with a network of over 200 cities across the country. It is claimed as one of the largest private banks in Pakistan. The bank is owned and operated by Abu Dhabi Group and has a worldwide presence in the United Arab Emirates, Bahrain, Bangladesh and Afghanistan.