On Monday, the Sindh High Court invited officials from the State Bank of Pakistan (SBP), the Securities Market Commission (SECP), the Finance Ministry and the Federal Investigation Agency (FIA) to solicit their comments and suggestions on how cryptocurrency can be allowed and regulated in Pakistan.
According to news reports, a two-judge panel chaired by Judge Muhammad Karim Khan Agha expressed that Pakistan should move forward and regulate cryptocurrency.
He noted that since the SBP and SECP do not allow commercial cryptocurrency transactions, this form of trading has been driven underground and thus seemingly triggered black market trading and transactions that were completely unregulated and could lead to illegal activities such as money laundering and terrorist financing.
Cryptocurrency has become an accepted method of payment and in many countries it seems that regulated banks and their exchange committees are introducing security measures to ensure that cryptocurrency can be used, but they are subject to restrictions to prevent money laundering, terrorist financing, etc. added in his ruling that illegal banking transactions must be avoided.
SHC judge expressed that Pakistan needs to keep up with the times and it needs to accept and regulate the cryptocurrency business or otherwise.
SHC directs SBP Deputy Governor to appear on October 19 to explain any steps the central bank has taken to facilitate Cryptocurrency trading, while setting appropriate rules for itself, and invited the SECP Director to the next meeting to assist the SBP. The Sindh High Court wants to ascertain ways to allow cryptocurrency and have it regulated.
In addition, the court has asked Ministry of Finance to send a representative with full knowledge of the crypto business, who will also assist SHC at the next hearing.