The central bank of Pakistan, the State Bank of Pakistan (SBP), has reportedly decided to prohibit the usage of all cryptocurrencies within the country. The central bank has also requested that the Sindh High Court prohibit "unauthorised operations" of cryptocurrency exchanges and impose penalties.An Interministerial Committee in Pakistan has recommended that cryptocurrency and all related activities be banned.

A high-level interministerial committee set up to provide recommendations on whether any kind of cryptocurrency should be permitted in Pakistan law reportedly submitted its report to the Sindh High Court on Wednesday.

The Sindh High Court established the committee, which is led by the deputy governor of the State Bank of Pakistan (SBP) and includes representatives from the Pakistani Ministry of Finance, Ministry of Information Technology, Telecommunication Authority, and Securities and Exchange Commission.

The SBP Deputy Governor Sima Kamil filed a 38-page report to the court that recommends a complete ban on all cryptocurrencies and related activities in Pakistan.

The committee recommended that cryptocurrencies be declared illegal, stating that after thorough consideration, the hazards of cryptocurrency exceed the benefits for Pakistan. Cryptocurrency, according to the research, might be used for money laundering and terrorism financing.

The committee also requested the court to prohibit "unauthorised operations" of cryptocurrency exchanges and apply penalties, as some countries have done. Recent investigations by Pakistan's Federal Investigation Agency (FIA) into crypto exchanges, including Binance, and the hazards they pose to investors are cited in the paper.

The Sindh High Court ordered the committee to transmit a copy of its report to the Ministries of Finance and Law, who will make the final decision on whether any kind of cryptocurrency would be permitted in Pakistan. The court also ordered the two ministries to jointly recommend whether any sort of crypto enterprise is permitted in the country. On April 11, they must submit a report on their decision.

Waqar Zaka, a television broadcaster and crypto entrepreneur, has petitioned the court to declare cryptocurrencies legal. On April 12, the court will resume hearing his petition.