The State Bank of Pakistan (SBP) has cancelled, with immediate effect, the authorization and license of M/s Galaxy Exchange (Private) Limited after identifying serious violations of the central bank’s regulatory instructions. The action effectively bars the exchange company from undertaking any foreign exchange related business activities across Pakistan.
In an official notice, the SBP stated that the cancellation applies to the company’s head office as well as all of its outlets nationwide. As a result, Galaxy Exchange is no longer permitted to conduct buying, selling, or dealing in foreign currencies, remittances, or any other exchange-related services regulated by the central bank.
The move reflects the SBP’s ongoing efforts to strengthen oversight of Pakistan’s foreign exchange market and ensure strict compliance with regulatory frameworks designed to safeguard financial stability and protect consumers. Exchange companies play a critical role in facilitating remittances, currency conversion and cross-border transactions, making regulatory discipline in this sector a key priority for monetary authorities.
While the central bank did not disclose specific details of the violations, it described them as serious breaches of SBP’s regulatory instructions. Such violations typically relate to non-compliance with anti-money laundering and counter-terrorism financing rules, weaknesses in internal controls, failure to meet reporting requirements, or breaches of operational and governance standards mandated for exchange companies.
The SBP has, in recent years, intensified supervision of exchange companies as part of broader reforms aimed at curbing illegal currency trading, discouraging informal exchange channels, and improving transparency in the foreign exchange market. Regulatory actions, including fines, suspensions and license cancellations, have increasingly been used as enforcement tools to ensure compliance.
The cancellation of Galaxy Exchange’s license underscores the central bank’s zero-tolerance approach toward entities that fail to adhere to regulatory requirements. It also sends a clear signal to other exchange companies operating in Pakistan that non-compliance will carry significant consequences, including the loss of authorization to operate.
For customers and business partners of Galaxy Exchange, the decision may cause short-term disruption, particularly for individuals and firms that relied on the company for currency exchange or remittance services. However, the SBP has consistently maintained that protecting the integrity of the financial system takes precedence over operational continuity of non-compliant entities.
Industry observers note that tighter enforcement by the SBP is part of a wider strategy to align Pakistan’s financial sector with international standards, especially those set by global watchdogs focused on financial transparency and illicit finance. Stronger regulation of exchange companies is also seen as essential to stabilising the currency market and improving investor confidence.
The development comes at a time when Pakistan is under continued pressure to manage foreign exchange reserves, stabilise the rupee and improve governance across financial intermediaries. Ensuring that licensed exchange companies operate within clearly defined rules is considered critical to these objectives.
The SBP has advised the public to conduct foreign exchange transactions only through authorized dealers and licensed exchange companies. It has also encouraged customers to verify the regulatory status of exchange firms before engaging in any financial dealings, warning that transactions conducted through unauthorized entities may expose individuals to financial and legal risks.
By cancelling the license of Galaxy Exchange, the SBP has reaffirmed its commitment to maintaining discipline in the financial sector and enforcing compliance with regulatory standards. The action highlights the central bank’s broader push to promote transparency, accountability and stability in Pakistan’s foreign exchange ecosystem.
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