The Peshawar High Court (PHC) has directed the federal government to draft a policy within two months aimed at addressing the growing illegal trading and business activities involving cryptocurrency across the country, including Khyber Pakhtunkhwa, according to media reports.
The court has also ordered the submission of a report detailing the progress.
The directive came from a division bench consisting of Justice Syed Arshad Ali and Justice Dr Khurshid Iqbal, during the hearing of a petition filed by Barrister Huzaifa Ahmad. The petitioner, representing himself in court, raised concerns about the lack of regulation surrounding digital currencies, which, despite a 2018 notification from the State Bank of Pakistan declaring such activities illegal, continue to thrive on various digital platforms.
The petitioner argued that several coaching centers and training academies in Khyber Pakhtunkhwa are promoting cryptocurrency and forex trading, often via social media platforms like TikTok, Facebook, and YouTube. These operations are functioning without government oversight and are not registered with the Securities and Exchange Commission of Pakistan (SECP), even though they could contribute to tax revenue for the Federal Board of Revenue (FBR).
The petitioner also highlighted the risks posed by these unregulated operations, warning of potential involvement in money laundering and terrorism financing. He emphasized that illegal trading could be used for anti-state activities, posing a serious threat to national security.
In response, the Deputy Attorney General informed the court that the federal government was already in the process of drafting legislation. The court granted a two-month deadline for the government to present a policy on the matter and postponed the hearing.
