Pakistan’s major bank, Alfalah, has advised its customers not to conduct any cryptocurrency transaction using its systems. This directive was issued after the central bank of Pakistan recommended a ban on cryptocurrencies in a report submitted to the High Court of Sindh.
Bank Alfalah Asked Its Customers to Avoid Crypto Transactions
Alfalah, a private Pakistani bank, has sent its customers SMS alerts, warning them not to deal in cryptocurrencies through its banking system. The bank was established in 1992. It has a large footprint across Pakistan, owning over 800 ATMs and 200 branches. Owned by Abu Dhabi Group, this bank is also present in Afghanistan, Bangladesh, UAE, and Bahrain. Many Pakistani media outlets in Pakistan reported this news.
According to their reports, the text message sent by the bank to its customers asked them to avoid dealing in virtual tokens, coins, currencies, and other related investment products. The message said that these products are not legal tender in Pakistan. It informed the central bank had not issued any license or authorization to any person or company for this purpose. It advised its customers not to conduct any such transaction through its channels.
Central Bank Not in Favor of Cryptocurrencies
The news of Alfalah sending this message came after the central bank submitted its report in the High Court of Sindh. It asked the court to declare cryptocurrencies illegal and ban them. The court directed the finance and law ministries to check this bank report and determine crypto’s legal structure.
Federal Investigation Agency of Pakistan had recently sent a notice to crypto exchange Binance about a huge scam where Pakistani investors allegedly lost more than $100 million. It had seized 1064 bank accounts involved in crypto transactions on exchanges like Coinbase, Coinmama, and Binance.