PCB must check involvement of betting, crypto companies as sponsors in PSL: SBP
Cricket
The central bank alleges shirts of players are being used for the advertisement of betting companies
LAHORE (Web Desk) - The State Bank of Pakistan (SBP) has asked the Pakistan Cricket Board (PCB) to check the advertising of betting and crypto companies on the shirts of players who are playing PSL-8 nowadays.
The central bank has further stressed for devising a code of ethics for its franchises with obligation to abide by the prevailing laws while selecting foreign sponsors.
In the letter issued by the Exchange Policy Department of the central bank to PCB’s Chief Operative Officer, the central bank said it has been observed that PCB has engaged Best Fintech Investment Coin (BFIC) as the “Official Technology Partner” of Pakistan Super League (PSL) Season 8.
According to the SBP, BFIC is a cryptocurrency and in terms of SBP’s BPRD Circular No. 03 dated April 06, 2018, all Banks/DFIS/ Microfinance Banks and Payment System Operators/ Payment Service Providers have been prohibited from dealing in/promoting virtual currencies.
This represents the regulatory stance of SBP on cryptocurrencies/virtual assets. Therefore, promoting a cryptocurrency through the event of PSL season 8 would not only contradict the aforesaid stance but would also entice the viewers in Pakistan to enter into the prohibited domain of crypto/virtual currencies.
The letter further states that Karachi Kings has inked 1XBAT as Titanium Sponsor. 1XBAT appears to be a surrogate brand of a sports betting website i.e. 1XBET which allows users to bet on a wide variety of popular sports.
Apparently, both these websites/domains are foreign-controlled, and thus any usage of their services by resident Pakistanis would result in the outflow of precious foreign exchange of the country, the letter further states.
"Since, neither these entities nor PCB has obtained any permission from SBP to take out of Pakistan any money earned by them from resident Pakistanis, any transfer of funds from their operations in Pakistan will be in violation of the Foreign Exchange Regulations Act, 1947."
The central bank has further requested PCB to ensure that these platforms don't offer any service in Pakistan, which will result in the outflow of funds from Pakistan (even through informal channels).
-- PCB responds to central bank --
A PCB spokesperson said BFIC has already been removed as the official technology partner and that the Board is strictly against the promotion of alcohol, tobacco, gambling and betting. He said it is being ensured that all sponsors abide by this restriction.
Rejecting that 1XBAT is a betting website, the spokesman said the Pakistan Electronic Media Regulatory Authority (PEMRA) would have stopped Pakistan Television Corporation (PTV) from signing an agreement with 1XBAT if the latter was involved in any suspected activities.
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