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Waqar Zaka’s claims: Will cryptocurrency be banned in Pakistan?

In May 2021, Waqar Zaka was hired as a crypto expert by the Pakistani government (Twitter)

According to Waqar Zaka, Prime Minister wants to ban cryptocurrency exchanges and mining in Pakistan. Just after his claim, Pakistan’s first crypto entrepreneur urged social media users to launch the biggest protest ‘Dharna With Waqar Zaka’ to support the regulation of crypto. But why Zaka thinks this way? Why a prime minister of the country would want to ban digital currency?

What is cryptocurrency?

A cryptocurrency is a form of digital currency that is secured by cryptography. These are decentralised networks that allow secure payments online. They are denominated in terms of virtual tokens which are represented by ledger entries enforced by a disparate network of computers that are internal to the system i.e. blockchain technology.

In short, the main thing about cryptocurrency is that it is not controlled by any central bank or authority which makes it immune to government interference.

Waqar Zaka’s claim

According to Waqar Zaka, his sources have claimed that Prime Minister Imran Khan wants to ban crypto exchanges and mining. Zaka asserted that whether the premier is willing to regulate or ban crypto, nation will protest in favour of crypto.

The social activist called for ‘Dharna With Waqar Zaka’ in case Lahore court rules against Crypto Exchanges. Zaka also warned that he would not let the prime minister or anyone ban crypto in Pakistan. He also warned of consequences that a massive protest will be launched by the Pakistani crypto community if anyone tries to ban crypto in the country.

The support from netizens 

Soon after his tweets, many social media users came in support of Waqar Zaka and a trend Dharna With Waqar Zaka’ started circulating on social media and supported the former host’s stance.

Waqar Zaka and cryptocurrentcy

Zaka earlier this year efficaciously convinced KP government for allowing him to run crypto mining farm, and as per the latest developments, mining machines running on hydropower have been installed in the KP region. 

Cryptocurrency and Pakistan

The State Bank banned all cryptocurrencies for a brief period in 2018 and later lifted the ban. However, most people in Pakistan are trading Bitcoins via cash because of the ban on it. There was another Bitcoin trading platform urdubit but now they are not trading Bitcoins in the country.

It was the first Bitcoin trading platform of Pakistan. Another way to buy Bitcoin in Pakistan is face to face. You make a deal with a person face to face and in return, you give him or her payment in local currency.

Will Cryptocurrentcy be banned in Pakistan?

Cryptocurrencies are unquestionably legalised in the United States, but are essentially banned in Saudi Arabia and some other countries. Hence, their legality depends on each individual country. Although regulating crypto in the country can be a great benefit to Pakistan in terms of the amount of cash flow it can bring in.