Pakistan Cryptocurrency Market

When cryptocurrency is introduced to undeveloped countries, coins become quite essential.Many people, especially in remote areas, do not have access to banks.

Pakistan's First Bitcoin Exchange:

Urdubit, Pakistan's first and largest Bitcoin exchange, was founded in October 2014. This platform was created by Danyal Manzar and Zain Tariq and ran on Blink Trade's platform and engine. The founders of this exchange first learned about Bitcoins in 2012, a year after the media-famous Bitcoin Boom.Urdu Bit chose to target Pakistan's freelancing industry, where currency exchange and cash payments remain a problem. At the time May 2016, freelancers were a large market in Pakistan as well.

 

Cryptocurrency issues in Pakistan

Many people in Pakistan are using Bitcoins as a payment method because it was a more good method.For a long time, there appeared to be no official government position on Bitcoin regulation in Pakistan. The problem was reduced to discussions and essays in which individuals discussed the advantages and disadvantages of utilising bitcoins in Pakistan. One of the causes for the mixed, sometimes polarised views of bitcoins was its claimed usage in money laundering activities around the world, which made the digital currency extremely valuable..

Few saw it as a problem with transaction transparency, which is critical for Pakistan's central bank. So, whenever bitcoins are approved, there must be a transparent mechanism in place to accept the system on a national level.

Until the end of 2017, the problem never came up on a larger platform to be discussed.

The State Bank of Pakistan has issued a warning against using cryptocurrency:

Pakistan state bank issued a  ban on crypto currency on 6  April 2018. All kinds of crypto currency including bitcoin lite coin  etc have been ruled illegal or ungranted by Pakistan state bank

According to the State Bank of Pakistan's circular:

“Any individual in Pakistan who wants to produce, sell, acquire, exchange, or invest in virtual currencies/coins/tokens must first obtain permission from the SBP.,” .

Due to the fact that the State Bank of Pakistan has encouraged the public to avoid cryptocurrency, it has not issued a ban due to the lack of a legal law to discuss the issue. The central bank of Pakistan, like the Reserve Bank of India, has warned cryptocurrency users against fraudulent activities that may arise as a result of their use.

The first bitcoin exchange urdubit decided to shut down as FBR had already been tracking and punishing those involved in a bitcoin trade

 

Crypto currency future in pakistan

Since bitcoin became popular around the world. Most of the money is invested in cryptocurrency as well. Many pakistani entrepreneurs in cryptocurrency attempted to capitalize on the potential of digital currency. Using a cheaper, easier and transparent system for recording transaction undoubtedly be a suitable option for many in developing countries like Pakistan