High Court Directive on Cryptocurrency Regulation
In a recent ruling, the Peshawar High Court has mandated that the federal government of Pakistan tackle the pressing matter of illegal cryptocurrency trading within a two-month timeframe. This directive emphasizes the necessity for the creation of formal policies alongside a detailed report outlining the government’s approach to regulate this burgeoning sector.
Background of the Case
The case was initiated by lawyer Huzaifa Ahmad, who highlighted a troubling trend: despite a prohibition from the State Bank of Pakistan since 2018, which deemed virtual currencies like Bitcoin and Litecoin illegal for transactions, illegal trading continues unabated.
Particularly in the Khyber Pakhtunkhwa Province, several educational institutions are not only providing training in cryptocurrency and forex trading but also promoting these activities through popular social media platforms such as TikTok, Facebook, and YouTube.
Government’s Commitment
During court proceedings, the Deputy Attorney General conveyed that the government is currently working on the necessary legislation aimed at regulating cryptocurrency trading.
This process is anticipated to take around one month. Following this timeline, the court has stipulated a two-month period for the government to present their policy proposal addressing these challenges.
