The State Bank of Pakistan which is the central bank of the nation has taken objection to the affiliation of the Pakistan Cricket Board (PCB) with a few sponsors for the Pakistan Super League (PSL). The regulator has taken the step in opposition to the sponsors who’re associated immediately or not directly to cryptocurrency. According to the central bank, the affiliation with a cryptocurrency unit is a contradiction of the nationwide stand on digital currencies.
The Senior Joint Director of SBP Yaser Arafat in a letter copied to the secretary of, the Ministry of Inter-Provincial Coordination, Islamabad, and the secretary of the ministry of finance, wrote about how selling the crypto-currency will “entice the viewers of Pakistan to enter the prohibited domain of crypto/virtual currencies.”
“It has been noticed that PCB has engaged Best Fintech Investment Coin (BFIC) because the ‘Official Technology Partner’ of PSL Season 8. We wish to spotlight that BFIC is a crypto-currency and by way of SBP’s BPRD round No 33, dated April 6, 2018, all Banks/DFIs/Microfinance Banks and Payment System Operators/Payment Service Providers have been prohibited from dealing in/selling digital currencies.
“This represents the regulatory stance of SBP on cryptocurrencies/virtual assets. Therefore, promoting a cryptocurrency through the event of PSL 8 would not only contradict the aforesaid stance but would entice the viewers of Pakistan to enter the prohibited domain of crypto/virtual currencies,” the letter stated.
The letter additional stated, “Apparently both these websites/domains are foreign controlled and thus any usage of their services by residents of Pakistan would result in the outflow of precious foreign exchange of the country. Since, neither these entities nor PCB has obtained any permission from SBP to take out of Pakistan any money earned by them from resident Pakistanis, any transfer of funds from their operations in Pakistan will be in violation of the Foreign Exchange Regulation ACT, 1974 (sic).”
