The State Bank of Pakistan (SBP) has urged the Pakistan Cricket Board (PCB) to develop a code of conduct for its franchises that will force them to follow local rules when seeking foreign sponsors.
According to a letter written by the central bank’s Exchange Policy Department to PCB’s Chief Operational Officer, PCB had hired Best Fintech Investment Coin (BFIC) as the “Official Technology Partner” of Pakistan Super League (PSL) Season 8.
According to the central bank, BFIC is a cryptocurrency, and all banks, DFIS, microfinance banks, payment system operators, and payment service providers are not permitted to deal in or promote virtual currencies, according to SBP’s BPRD Circular No. 03 dated April 6, 2018.
This is an overview of the SBP’s regulatory stance to bitcoin and virtual assets. As a result, selling a cryptocurrency through the PSL season 8 event would not only contradict the preceding perspective, but would also encourage Pakistani viewers to enter the criminal world of virtual and crypto currencies.
SBP also stated that 1XBAT has been named the Titanium Sponsor of the Karachi Kings. It went on to say that 1XBAT appears to be a clone brand of 1XBET, a sports betting website that allows clients to wager on a variety of popular sports.
According to the SBP, both of these websites/domains are allegedly under foreign control, and so any use of their services by Pakistanis living there would result in a loss of the country’s valuable foreign money. Any transfer of funds from these entities’ or PCB’s operations in Pakistan will be in violation of the Foreign Exchange Regulations Act of 1947, as none of them have obtained SBP authorisation to take any money made from resident Pakistanis outside of Pakistan.
Given the foregoing, SBP has also requested that PCB ensure that these platforms do not provide any services in Pakistan, which could lead money to exit the country (even through informal channels).
According to a PCB spokesman, BFIC is no longer the official technical partner. According to the spokesperson, PCB is completely opposed to the promotion of alcohol, tobacco, gambling, and betting, and all sponsors are required to adhere to this policy.
According to the PCB spokesperson, the Pakistan Electronic Media Regulatory Authority (PEMRA) would have barred Pakistan Television Corporation (PTV) from signing an arrangement with 1XBAT if the latter was involved in any problematic activity. A representative for the PCB also denied that 1XBAT is a betting website.