According to the 24 News HD TV station, the Sindh High Court (SHC) on Wednesday ordered the federal government to regulate cryptocurrencies and bitcoins within three months.
The court ordered the government to provide a report on the matter within three months after hearing a petition brought by a man called Waqar Zaka challenging the government’s prohibition on Digital Cryptocurrency.
The SHC also ordered the formation of a high-level committee under the supervision of the federal secretary of finance, which would engage all stakeholders before taking any measures to regulate the currency.
The committee was also to include members from the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan (SBP), and the ministries of law and information technology.
Highlights of SHC:
By next month, Pakistan may have a regulated crypto market.
The government has been urged by the Sindh High Court to regulate cryptocurrencies.
However, The government has been given a three-month deadline.
The Sindh High Court in Pakistan has ordered Prime Minister Imran Khan’s administration to speed up cryptocurrency legislation. Pakistan’s governing administration has been given a three-month deadline to draft new regulatory regulations.
A new committee, led by Pakistan’s federal finance secretary Kamran Ali Afzal, has been established to accelerate the pace of this job. The administration has been urged by the court to seek input from all parties, including government officials and ministries.
Pakistan’s central bank governor, Reza Baqir, said in April that the government was looking at methods to regulate cryptocurrencies and their potential to facilitate off-the-books transactions within a legal framework.
The State Bank of Pakistan (SBP), Pakistan’s Securities and Exchange Commission (SECP), the Ministry of Finance, and the Federal Investigation Agency are all involved in the investigation (FIA)were summoned by the Sindh High Court on Monday to provide comments and suggestions on how cryptocurrency can be allowed and regulated in Pakistan.
According to a two-judge bench headed by Justice Mohammad Karim Khan Agha, Pakistan should follow suit and regulate cryptocurrencies.
Because the SBP and SECP do not authorize bitcoin business transactions, this form of commerce has been pushed underground, possibly leading to uncontrolled trade and transactions in the black market, which may lead to criminal acts including money laundering and terror funding.
The bench noted that the petitioner wanted to start a cryptocurrency exchange business in the country, but it appeared that the SBP had issued instructions to banks prohibiting any cryptocurrency transactions when it heard a petition challenging a circular allegedly issued by the SBP in April 2018 prohibiting the use of virtual currencies.
The SBP’s lawyer cited the Banking Companies Ordinance, 1962, and the State Bank of Pakistan Act, 1956, but the bench noted that both laws were more than 50 years old and that the Pakistan Stock Exchange now deals in derivatives and other transactions that were not available when these laws were enacted.
In many countries, it appears that regulating banks and exchange commissions are putting in place safeguards to ensure that the use of cryptocurrency is allowed but subject to restrictions to avoid money laundering, terror financing, and other illegal banking transactions, the bench added in its order.
It went on to say that Pakistan needed to keep up with the times and accept that bitcoin was now a component of commercial dealings. “In our opinion, Pakistan should keep up with the times and welcome the bitcoin industry or else control it,” it said.
Pakistan, a country where unprecedented bans have frequently stifled progress, has recently become a cryptocurrency hotspot. Pakistan has had an extremely exciting path towards leading change by jumping on the cryptocurrency adoption bandwagon, from banning PUBG, TikTok, and even 3D printers to the FIA arresting anybody who owned bitcoins.