SBP declares all Virtual Currencies, Initial Coin Offerings illegal

State Bank of Pakistan through a circular informed all the general public that dealing, handling, buying and selling are prohibited and if found it would be reported to financial monitoring unit.

The central bank in a circular said that Virtual Currencies (VCs) like Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin, Pay Diamond etc. or Initial Coin Offerings (ICO) tokens are not legal tender, issued or guaranteed by the Government of Pakistan.

State Bank of Pakistan has not authorized or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such Virtual Currencies/Coins/Tokens in Pakistan. In view of the foregoing, Exchange Companies and Exchange Companies of ‘B’ Category are advised to refrain from processing, using, trading, holding, transferring value, promoting and investing in Virtual Currencies/Tokens.

Further, Exchange Companies and Exchange Companies of ‘B’ Category shall not facilitate their customers to transact in VCs/ICO tokens.

Any transaction in this regard shall immediately be reported to Financial Monitoring Unit (FMU) as a suspicious transaction.