Bitcoin, other cryptocurrencies not recognised as legal tender in Pakistan: SBP

KARACHI: The State Bank of Pakistan has advised the general public that virtual currencies like Bitcoin, Litcoin, Pakcoin, DasCoin, Pay Diamond etc are neither recognized as a legal tender nor SBP has authorized or licensed any individual or entity for the issuance, sale purchase, exchange or investment in any such currency in Pakistan.

In a statement SPB said virtual currencies provide high degree of anonymity and potentially can be used for facilitating illegal activities. Also, due to the ambiguous nature of virtual currencies, no legal protection or recourse is available to any individual in the event of a loss incurred.

The general public is advised 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.

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

SBP also advised the banks/DFIs and payment system operators/payment service providers not to facilitate their customers/account holders to transact in virtual currencies.