Govt ordered to make crypto currency policy
The Peshawar High Court ordered the Pakistani federal government to create a detailed two-month policy for controlling illegal cryptocurrency and forex operations throughout the nation.
During a hearing of a legal petition Barrister Huzaifa Ahmad presented on his own behalf at the Peshawar High Court. Bilal Durrani served as the deputy attorney general of Pakistan who represented the federal government.
Background of the Case
The public claim that Pakistan requires proper legal guidelines to handle digital currencies because of their expanding global usage. The State Bank of Pakistan issued through its 2018 notification a prohibition against cryptocurrency business operations yet the market remains active because many entities evade the rules.
Huzaifa demonstrated that training institutions across Khyber Pakhtunkhwa both sell crypto and forex trading services and promote them using TikTok and other digital platforms without controlling oversight.
Illegal Activity and Risks to National Security
These platforms provide traders with the capability to conduct online fund withdrawals and freezes and collections without enabling government oversight, as the petitioner claims. This insufficient oversight creates multiple security and financial risks according to his warning.
Facilitates money laundering
Poses threats of terror financing
The platform enables internet users to conduct illegal gambling and activities that challenge the state.
The platforms lack Seecurities and Exchange Commission of Pakistan (SECP) registration yet they could produce tax income for Federal Board of Revenue (FBR) when properly monitored according to Huzaifa.
He demanded that both federal and provincial governments should destroy these rogue businesses while demanding improved enforcement from the Federal Investigation Agency along with related authorities.
Court’s Order and Government Response
The Deputy Attorney General Bilal Durrani sought one month from the court to finalize legislation about digital currencies during his presentation to the bench.
Regarding the formal policy and detailed report submission to the court the two-member division bench decided to give the federal government two months to fulfill these requirements.
What’s Next?
The PHC’s recent order creates a milestone for cryptocurrency regulation in Pakistan which shows increasing awareness about inadequacies in virtual finance supervision during its current digital transformation.
The judicial proceedings for this case will be paused after the policy is received by the court. The federal government stands under intense scrutiny as it pursues development of a formal policy which must address both legal and economic aspects and security implications of unregulated crypto transactions.
