Rabbani criticises crypto move without national debate, stakeholders input

ISLAMABAD: Former Senate chairman Mian Raza Rabbani condemned the introduction of cryptocurrencies without a national debate or without taking Parliament and relevant stakeholders into confidence.

He added that there is massive confusion within the federal government regarding the provision of a regulatory framework for digital and virtual assets, as the finance ministry signals its intent to bring the crypto economic system under formal oversight.

“The introduction of crypto currencies, controversial, even intentionally, without a national debate or Parliament or the relevant stakeholders being taken into confidence, is condemned,” he said in a statement on Tuesday.

Rabbani urged government to take notice of the “solo flight” by the finance ministry before this becomes a mega scandal. Last Friday, he said the State Bank of Pakistan (SBP) issued a clarification, saying that crypto currencies were not banned outright, but remained outside the existing legal framework.

The ex-Senate chairman said the SBP advised banks, DFIs, micro-finance banks, electronic money institutions, and payment service providers to avoid engaging with virtual assets due to the absence of legal and regulatory framework.

Rabbani said the government told the National Assembly’s Standing Committee on Finance that crypto currencies remained banned and illegal in Pakistan.

He said the Standing Committee of the Senate on Information Technology and Telecommunication also raised similar concerns, but the government was unable to provide any satisfactory answer.