PESHAWAR: The Peshawar High Court (PHC) has given the federal government two months to enact legislation to regulate cryptocurrency in Pakistan.
A divisional bench comprising Justice Syed Arshad Ali and Justice Dr. Khurshid Iqbal heard the petition against the illegal business of cryptocurrency in Pakistan.
During the hearing, the Deputy Attorney General appeared before the court and said that the government was already working on relevant legislation. He sought one month period for legislation.
Justice Syed Arshad Ali responded, “Give two months’ time and enact the legislation.”
The court directed the federal government to pass the required law and submit a report within two months.
The petition was filed by Barrister Huzaifa Ahmed. He said illegal cryptocurrency trading is widespread in Pakistan.
He told the court that the State Bank of Pakistan declared cryptocurrency illegal in 2018. Despite this, coaching and training centers for digital currencies are operating across the country, including in Khyber Pakhtunkhwa.
“These centers are not registered with any authority. They operate illegally,” he said.
Barrister Huzaifa added that countries like China, Morocco, and Algeria have banned cryptocurrency trading. He also raised serious concerns about the government’s strategic advisor for digital currency, claiming he is a convicted individual from the United States.
“This is the real issue,” remarked Justice Syed Arshad Ali.
The petitioner warned that unregulated cryptocurrency trading poses a threat to national security.
He urged the court to order a complete ban on cryptocurrency and digital forex trading.
The PHC, however, directed the government to legislate to regulate the digital currency business instead. It gave a clear deadline of two months and instructed the government to submit a compliance report.
Recently, the federal government formed Pakistan Crypto Council (PCC) to legalise the digital currency business in the country.
This week, Pakistan appointed the Binance founder Changpeng Zhao (CZ) as strategic advisor of the Pakistan Crypto Council (PCC). He will assist Pakistan in regulating cryptocurrency and developing blockchain infrastructure.
