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Islamabad United faces backlash over Binance deal amid nationwide Crypto ban

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Islamabad United, a prominent franchise of the Pakistan Super League (PSL), has entered into a partnership with Binance, the world’s largest cryptocurrency exchange, as its official exchange partner. This move has sparked widespread debate, given that cryptocurrency trading is currently banned in Pakistan, with violators facing potential legal action.

The State Bank of Pakistan (SBP) issued a notice in 2018 explicitly prohibiting individuals and financial institutions from engaging in virtual currency transactions, including Bitcoin and Ethereum. Despite this, Islamabad United’s collaboration with Binance raises questions about the consistency of regulatory enforcement in the country.

Pakistani authorities have been actively cracking down on cryptocurrency usage, citing risks such as fraud, money laundering, and capital flight. Earlier this year, several individuals were investigated and penalized for conducting digital currency transactions. However, Islamabad United’s open partnership with Binance appears to contradict the spirit of the ban, fostering perceptions of selective enforcement of the law.

“This is hypocrisy at its peak,” commented a fintech analyst anonymously, as reported by TechJuice. “While individuals are penalized and their bank accounts are blocked for crypto trading, a PSL franchise is openly endorsing the very exchange facilitating these transactions.”

The timing of this partnership is significant, as Pakistan is reportedly reconsidering its stance on cryptocurrencies. Proposals to amend the SBP Act could introduce regulations to recognize digital assets under a centralized framework. However, until these proposals are implemented, cryptocurrency-related activities remain in a legal gray area.

Critics argue that partnerships like these send mixed signals to the public. “How can the government enforce a ban while allowing sponsorships that indirectly promote the same banned activity?” questioned a legal expert.

Binance’s involvement in sports sponsorship aligns with a global trend of cryptocurrency companies seeking mainstream acceptance through partnerships with sports teams. Islamabad United’s management has described the deal as an effort to educate fans about blockchain technology. However, skeptics view it as an attempt to normalize cryptocurrency usage in a country with unclear legal parameters.

This partnership highlights Pakistan’s inconsistent approach to emerging technologies and underscores the need for clear, enforceable regulations that ensure fairness between corporations and individuals. Until such frameworks are established, collaborations like this risk undermining public trust in the rule of law.

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Name of Author: Cricexec Staff

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