Bank Alfalah in Pakistan has outlawed bitcoin transactions for its customers. Customers who use cryptocurrency through the bank’s channels have received SMS messages.
The following are excerpts from the bank’s SMS to customers, as published by various media outlets:
Dear Customer, Virtual currencies/coins/tokens, etc., are not legal tender, issued or guaranteed by the government of Pakistan, and the State Bank of Pakistan (SBP) has not authorized or licensed any individual or entity for the same. Kindly avoid conducting such transactions from any channel of Bank Alfalah.
The central bank of Pakistan, the State Bank of Pakistan (SBP), has presented a crypto report to the Sindh High Court (SHC), the country’s highest court. Many reports soon followed, claiming that Bank Alfalah had begun sending SMS to its customers.
According to the central bank, cryptocurrencies should be deemed entirely illegal and outlawed. Following that, the SHC directed the law to the finance ministries to evaluate the SBP report and devise a legal framework for cryptocurrency.
There was also a major scam recently that allegedly stole over $100 million from Pakistani investors. As a result, the Pakistan Federal Investigation Authority (FIA) recently issued a notice to Binance, a cryptocurrency exchange. Customers involved in crypto transactions on exchanges such as Coinbase, Binance, and Coinmama had their bank accounts frozen by the authority.
Additionally, ProPakistani, an online blog, reported that numerous banks had restricted their customers’ credit card transactions owing to suspected cryptocurrency transactions. Furthermore, several banks in the nation have frozen consumers’ accounts who used the Binance P2P marketplace.
Bank Alfalah was founded in 1992 and now has over 200 locations around the country. It is said to be one of Pakistan’s largest private banks. The Abu Dhabi Group owns and operates the bank, which has offices in the United Arab Emirates, Bahrain, Bangladesh, and Afghanistan.