ISLAMABAD, Mar 14 (APP): The State Bank of Pakistan (SBP) has asked Pakistan Cricket Board to review its engagements with Innovation Factory, a cryptocurrency company, and OKFX.io, a platform that facilitates foreign exchange trading.
In a letter addressed to Chairman PCB, a senior official of the banking regulator has also recommended that PCB and its Pakistan Super League (PSL) franchises perform proper due diligence of all potential partners to ensure that none of them operate in the prohibited domains of cryptocurrencies, betting, and unauthorized foreign exchange trading.
Referring to a last year’s letter addressed to Salman Naseer, the chief operating officer (COO) of the PCB, the official said the SBP had told the PCB that the sponsorship deal with cryptocurrency would entice viewers of Pakistan to enter into the prohibited domain of Crypto/virtual currencies.
“(The) PCB was, inter alia, sensitized about its engagement with Best Fintech Investment Coin (BFIC), a cryptocurrency, and engagement of surrogate brands of betting web-sites with franchises of PSL season 8.
“In this background, it has come to our knowledge that PCB has again collaborated with Innovation Factory, as “Official
Category Sponsor” for the PSL Season 9, which is, inter alia, a cryptocurrency company that has developed BFIC.
We would like to bring to your attention the regulatory stance of SBP in the matter. In terms of BPRD Circular No. 03 dated April 6, 2018, all Banks/DFIs/Microfinance Banks and Payment System Operators/Payment Service Providers have been strictly prohibited from dealing in or promoting virtual currencies. Therefore, promoting cryptocurrencies through PSL season 9 is inappropriate as it might entice the viewers in Pakistan to enter into the prohibited domain of crypto/virtual currencies, resulting in an outflow of foreign exchange through formal channels.”
Similarly, it has also been observed that PCB has partnered with OKFX.io, a platform that facilitates foreign exchange trading. We would like to highlight that offering foreign exchange trading products in Pakistan without prior authorization of SBP is illegal.
Since SBP has not authorized OKFX.io to offer foreign exchange trading products and services in the country, therefore PCB’s formal association with it as a sponsor in PSL season 9 is unwarranted. Such an arrangement may lure the public towards the prohibited domain of foreign exchange trading.
