Few weeks ago, State Bank of Pakistan issued a circular imposing a ban on Cryptocurrencies urging Banks and other financial institutions to stay away from trading, buying, selling, transferring or facilitating Cryptocurrencies and report any such transactions to Financial Monitoring Unit (FMU) as suspicious. The circular also mentioned Pakistan's first ever Crypto PakCoin - used for Mobile Top-ups and general use.
However, what's interesting is that the ban could not stop users from investing in Cryptocurrencies. The team of PakCoin confirms that ever since their name is mentioned in the circular their business has doubled actually. The Pakcoin CEO mockingly said, that it actually helped them gain visibility which otherwise would have been an uphill task in the country.
The ban not just doubled the business for PakCoin but also brought the highest liquidity to UrduBit (Country's first Bitcoin exchange), following two days the ban. Although, UrduBit shortly announced closure, but users were quick to buy Bitcoin before UrduBit could seize trading.
Sources suggest that, the buying/selling on the LocalBitcoins for PKR/BTC pair have picked up ever since. The volume exchanged is whooping $14 Million.
Pakistan stock market is one of the emerging markets in the world and often enjoys massive volume. If stats were to believe, a large number of stock traders started trading cryptocurrencies to try their luck. And I believe, that they will continue trading one way or the other. After all, what preventive measures the governments have?
Pakistan’s experience with cryptocurrencies offers just another example of how ineffective financial authorities can be when trying to fill a legal vacuum with prohibitive administrative measures. Blockchain is simply unstoppable. While DEX (Decentralized Exchanges) are proving to be just another Nail in the Coffin...
Let me know what your thoughts are, keep Cryptoying. !!!