The Sindh High Court on Monday summoned officials of the State Bank of Pakistan (SBP), Securities and Exchange Commission of Pakistan (SECP), Ministry of Finance and Federal Investigation Agency (FIA), asking them to come up with comments and suggestions as to how cryptocurrency can be allowed and regulated in Pakistan.
According to a report by Dawn, the two-judge bench headed by Justice Mohammad Karim Khan Agha was of the view that Pakistan should also move with times and regulate cryptocurrency.
It observed that since the SBP and SECP were not allowing cryptocurrency business transactions, this mode of trade was being driven underground and thus, prima facie, causing such trade and transactions in black market which was completely unregulated and can lead to illegal activities, such as money laundering and terror financing.
Globally cryptocurrency is becoming an accepted mode of transaction and in many countries, it seems that regulating banks and their exchange commissions are putting in place safeguards to ensure that the use of cryptocurrency is allowed but subject to restrictions so that money laundering, terror financing and other illegal banking transactions are avoided, the bench in its order added.
“In our view Pakistan needs to move with the times and should embrace cryptocurrency business or otherwise and regulate the same,” it added.
The bench directed a deputy governor of SBP to appear on Oct 19 and explain any steps that the central bank has taken in order to facilitate this business whilst making appropriate regulations for the same and it also summoned the SECP director for next hearing to assist SBP as well as the court as to how cryptocurrency can be allowed and regulated.
Moreover, the court issued a directive to the Ministry of Finance’s secretary to send a representative, fully conversant with cryptocurrency business, who will also assist it on the subject matter at next hearing.
The bench also summoned the director of the FIA’s cybercrime wing to come up at next hearing with comments about regulating cryptocurrency exchange and what action, if any, has been taken against persons engaged in unregulated cryptocurrency business.
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