Following the decision by State Bank of Pakistan (SBP), where it barred all financial institutions from carrying out cryptocurrency related transactions, Pakistan’s pioneer cryptocurrency exchange Urdubit has announced to close it operations.
In the first week of April, the central bank of Pakistan had barred all financial institutions from dealing with crypto companies saying “it poses a potential threat of using the currency for illegal activities”.
“Virtual currencies/coins/tokens provide a high degree of anonymity and can be potentially used for facilitating illegal activities. Also due to the ambiguous nature of virtual currencies, no legal protection or recourse is available to any individual,” read a statement issued by the SBP.
In the wake of SBP’s decision, Urdubit announced to end its operations. “Due to the current stance on virtual currencies by SBP we will be closing doors. Please withdraw your funds as soon as possible,” read a statement issued by Urdubit.
Urdubit was first launched in 2014 as cryptocurrency saw a boom and its value skyrocketed. It became first-ever Bitcoin exchange platform to open its operations in Pakistan.
Rodrigo Souza, the co-founder of BlinkTrade, the company behind the open-source software that Urdubit used, said they were working on returning the money to their users that they have deposited.