Pakistan to ban cryptocurrency and investigate Binance
Following the footsteps of the RBI on crypto space, Pakistan’s central bank has banned cryptos in the country as well.
However, for bitcoin mining, this issue does not matter. As per the reports of the University of Cambridge, Pakistan had accounted for 0% of Bitcoin’s international hash rate alongside China. The percentage of hash rate of India also accounts for only 0.05% globally.
From the viewpoint of cryptocurrency adoption, this issue will have a greater market impact. According to a report of Chainalysis, the global adoption of cryptocurrency increased up to 880% in the year 2021. The main three countries that were in the 2021 Global Crypto Adoption index were Vietnam, India and Pakistan.
Pakistan’s third-place ranking was due to its P2P exchange trade volume. In contrast, India came 72nd in the category.
It’s no surprise that Pakistan has become involved in crypto exchanges in light of its decision to ban cryptos and its ranking within the Index for P2P exchange trade volume.
Along with banning cryptos in the country, the State Bank of Pakistan has also launched an investigation into Binance and OctaFX. Binance might have by now the knowledge to tackle regulatory issues it will still have trouble dealing with the ban of crypto in Pakistan.