The State Bank of Pakistan (SBP) and the Federal Government are considering the ban cryptocurrencies in Pakistan, according to a report submitted to the Sindh High Court (SHC) on Wednesday.
The Sindh High Court (SHC) has been hearing a case regarding the laws pertaining to use of cryptocurrencies in Pakistan.
On October 20, the SHC had told the Federal Government to regulate the cryptocurrencies within a three month period and ordered to form a committee headed by Federal Secretary of Finance to determine the legal status of the cryptocurrencies.
However, the report submitted to the Sindh High Court (SHC) in this regarding states that cryptocurrencies are illegal and could not be used for trade in Pakistan. Furthermore, the report highlights several other countries, including China and Saudi Arabia that have been cryptocurrencies.
If a final decision is taken is this regard, the Federal Government and State Bank of Pakistan may completely ban the use of cryptocurrencies in Pakistan.
The report also refers to the recent multi-billion scams involving crypto exchanges such as Binance and OctaFX. The SHC has ordered that the report be sent to the finance and law ministries for a final decision on the legal status of cryptocurrencies in Pakistan.
The finance and law ministries would work out a legal frame for cryptocurrencies in Pakistan and decide whether place a ban on the digital currencies would be within the bounds of the constitution. The report has urged the court to ban cryptocurrencies and their exchanges as well as impose heavy penalties against them like some other countries.
Moreover, the State Bank of Pakistan (SBP) Deputy Governor, Seema Kamil, submitted the 38-page report recommending that a ban be place on cryptocurrencies in Pakistan, declaring them illegal. The report added that cryptocurrency could be used to finance acts of terrorism and increase money laundering.
The SHC also said that the Federal Investigation Agency (FIA) and other agencies would continue to act according to their current rules regarding the cryptocurrencies until a final decision is taken.
Meanwhile, TV personality and influencer, Waqar Zaka, has been fighting to legalize cryptocurrencies in Pakistan. He has also urged the court to rethink about declaring the assets legal as large number of Pakistanis have invested in the digital currencies.
Sir @ImranKhanPTI you are pushing the youth to show their power through #TechnologyMovementDharna . No one should worry , as long as I’m alive & Govt don’t put fake cases on me , I will not let Crypto get banned . But it’s sad to see @ImranKhanPTI digital policy— Waqar Zaka (@ZakaWaqar) January 12, 2022