ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Sunday Nov 18th 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

Cryptocurrency Exchange Urdubit Shuts Down After Announcement From Pakistani Central Bank

By

Matthew

De Silva

WriterETHNews.com

On Friday, the State Bank of Pakistan prohibited regulated entities from facilitating cryptocurrency-related transactions. Within hours, Urdubit announced its closure.

On April 6, 2018, Muhammad Akhtar Javed, director of the State Bank of Pakistan (SBP), issued a circular entitled "Prohibition of Dealing in Virtual Currencies/Tokens." Virtual currencies and tokens issued through initial coin offerings (ICOs) are not legal tender, he explained, and these digital assets are neither issued nor guaranteed by the Pakistani government.

"SBP has not authorized or licensed any individual or entity for the issuance, sale, purchase, exchange or investment in any such Virtual Currencies/Coins/Tokens in Pakistan," Javed wrote. "All banks/DFIs [Development Financial Institutions]/ 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."

Javed further declared that these regulated entities "will not facilitate their customers/account holders to transact in VCs/ICO Tokens" and any crypto-linked transactions must be reported as "suspicious transactions" to Pakistan's Financial Monitoring Unit.

It's important to note that the SBP did not explicitly ban the actual use of cryptocurrencies (e.g., if a person bought produce from a grocery store using bitcoin). However, the bank's guidance forbade the conventional financial activities that allow many people to enter the cryptocurrency market. Already, the SBP's guidance has affected virtual currency exchange in the country. Urdubit, a bitcoin trading platform based in Karachi, has shut down.

As one can see, Urdubit's trading volume spiked in the wake of this announcement as customers rushed to liquidate and withdraw their holdings.

Source

According to the raw data, on April 6, the exchange had a volume of 26 BTC before tapering off over the weekend. It's not apparent how many BTC are in the exchange's possession or whether any users failed to remove their funds before Urdubit shut down for good.

Source

Although the exchange communicated its shutdown on its website and via social media, it's unclear whether Urdubit reached out to customers through any other avenues. One Twitter commentator asked why Urdubit had not e-mailed its customers about its closure.

The SBP guidance and Urdubit's announced closure occurred on the same day that the Reserve Bank of India took similar measures against cryptocurrency transactions. Like the SBP, the Reserve Bank of India (RBI) barred regulated entities from working with businesses or individuals dealing with cryptocurrencies. However, the RBI also addressed the possibility of a central bank digital currency.

Last year, ETHNews reported on Pakistan's Federal Board of Revenue, which launched an investigation into possible tax evasion and money laundering that might have been carried out through bitcoin trading.

Matthew De Silva

Matthew has a passion for law and technology. He graduated from Georgetown University, where he studied international economics and music. Matthew enjoys biking and listening to tech podcasts. He lives in Los Angeles.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest Urdubit, Pakistan or other Ethereum wallets and exchanges news.