Share this article
Pakistan Bars Banks from Crypto and ICO Trading
A long-running cryptocurrency exchange in Pakistan is closing its door following a new advisory from the country's central bank.
By David Floyd
Updated Sep 13, 2021, 7:47 a.m. Published Apr 6, 2018, 9:36 p.m.
Pakistan's central bank issued a statement barring financial companies in the country from working with cryptocurrency firms, becoming the latest institution of its kind to bar the activity.
In a statement posted to its website (and circulated via social media), the State Bank of Pakistan (SBP) said:
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
"...all Banks/ DFIs/ Microfinance Banks and Payment System Operators (PSOs)/Payment Service Providers (PSPs) are advised to refrain from processing, using, trading, holding, transferring value, promoting and investing in Virtual Currencies/Tokens. Further, banks/DFIs/Microfinance Banks and PSOs/PSPs will not facilitate their customers/account holders to transact in VCs/ICO Tokens. Any transaction in this regard shall immediately be reported to Financial Monitoring Unit (FMU) as a suspicious transaction."
The central bank did not respond to a request for comment. But as of press time, the announcement is already having an impact on the local cryptocurrency scene.
Urdubit, a cryptocurrency exchange that first launched in 2014 with the goal of building a base of support in the region, said in the wake of the statement that it will shut down. Urdubit was the first bitcoin exchange platform to open its doors in the country.
The decision was announced via Facebook, with the startup urging its customers to "please withdraw your funds as soon as possible."
Urdubit's Facebook post included a link to correspondence from the central bank, which including the warning about transactions being tagged as suspicious.
Speaking to CoinDesk, Rodrigo Souza, the co-founder of BlinkTrade (which provided the open-source software that Urdubit has used) argued that the central bank move is aimed at putting the brakes on cryptocurrency investment.
"Governments and Banks are going to fight Bitcoin because investing Bitcoin means a bank run on the central bank," he said, going on to add:
"We are working hard to return all PKR to all our customers before our bank shutdown our accounts."
The move comes a day after India's central bank blocked banks from doing business with cryptocurrency exchanges. But as CoinDesk subsequently reported, exchanges in that country are eyeing a legal challenge that could see the dispute argued before India's highest court.
Pakistani rupee image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin pushes above $90,000 as traders eye change in pattern
Particularly hard-hit in 2025's final sessions, crypto-related stocks are bouncing in this year's first trading day.
What to know:
- Bitcoin rose above $90,000 during U.S. trading hours on Friday.
- It's a notable change in trend, as crypto prices late in 2025 were typically on the defensive while American stocks traded.
- Strategy, Coinbase, Hut 8 and Galaxy Digital were among the crypto-related stocks seeing strong gains.
Top Stories
