Should we still invest in and use crypto platforms keeping in mind the current situation of agencies and government in Pakistan?
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1 Answer
I just read about various decisions made by State Bank of Pakistan pertaining to crypto and it turns out that SBP has indeed banned trading / investment of Cryptocurrencies , although it is also clear that they do not fully understand the concept and this ban would be short lived. but uptil now it is Banned
Why Has SBP Banned Cryptocurrencies?
The ban on cryptocurrencies has been issued in light of the following risks:
High price volatility as investments tied to virtual currencies are highly unstable and are primarily based on speculations;
- Failure/closure of virtual currency exchanges/businesses due to any reason including action by law enforcement agencies make it a risky investment
- Hacking/security compromises of cryptocurrency exchanges and wallet businesses, as a number of instances have been recorded around the world where a huge amount of funds have been lost due to the exchange/wallet operations being hacked/compromised.
Furthermore, fraudsters have also started offering pyramid style investment schemes and coins, promising high returns (similar to Ponzi schemes) to the general public in Pakistan. SBP believes that this can cause significant losses to the general public.
Recent news of few people getting arrested who were dealing with Bitcoin were actually arrested because they were running a website offering courses of cryptocurrency at bit.college ,the website nor their business will registered thus they were arrested .
Should you Invest when Crypto is Banned ?
Short answer : No.
It is risky and your assets can get seized but if you are only holding crypto on various online exchanges there is nothing much any government can do about it same goes for trading , but if are very active and make withdrawals and buying daily it might be risky for you . If you are a casual holder of cryptocurrency It is good to go and you are safe .