There is a bad news for cryptocurrency investors in Pakistan as Urdubit is going to close its operations in the country. Urdubit is the first Pakistani exchange platform for cryptocurrencies like Bitcoin. The decision is a result of State Bank of Pakistan’s (SBP) stance against the cryptocurrency. A few days back, SBP released a circular and ordered financial institutions to make their transactions free from cryptocurrencies. In addition, SBP also declared virtual currencies illegal in Pakistan.
Key Details about Urdubit’s Decision
In a Facebook post, Urdubit revealed that they are going to close their operations in Pakistan. They also said that investors should withdraw their funds as soon as possible. Urdubit’s management further said that they respect SBP’s decision about virtual currencies and is going to completely shut down their business in Pakistan. In addition, they added that they are also working on returning the amount to investors that they earlier deposited.
Why SBP Banned Virtual Currencies?
SBP banned cryptocurrencies or virtual currencies due to several reasons. Some of them are given below for your understanding.
- These currencies observed high price volatility as they are highly unstable and mainly rely on speculations.
- Several cases were reported around the globe where people lost their hard earned money because of the security and hacking issues.
- There is a high possibility of closure or failure of cryptocurrency businesses or exchanges because of any action by the law enforcement agencies.
Different governments are banning virtual currencies in their countries. Prices of cryptocurrencies have also seen a sharp decline in past few weeks. It is advisable to be careful before investing your hard earned money in virtual currencies. Some financial analysts also believe that cryptocurrency is just a bubble that will completely burst in the near future.