LHC seeks report on cryptocurrency’s legal status in Pakistan

Friday  Lahore High Court has asked the federal government to submit a complete report regarding the legal status of cryptocurrency in Pakistan. The court wanted to know whether the State Bank of Pakistan (SBP) or Security Exchange Commission of Pakistan (SECP) has laid down any law, rules, regulations for regulating the digital currencies in the country. In addition to that court gave permission to Faisal Qureshi economic expert to assist the court in the case.

During the case hearing, SECP informed the court that the commission still has not issued any license to conduct business through cryptocurrency, additionally, the petitioner’s lawyer stated that it is not clear what is the legal status of cryptocurrency and who is to regulate it. Justice Jawad Hassan was hearing a writ petition challenging the jurisdiction of a special court for banking offenses to hear a post-arrest bail petition of a suspect arrested by the FIA.

In the recent past, Lahore High Court (LHC) had constituted a committee to present its opinion and recommendations on the legal status of cryptocurrency in Pakistan. The committee consists of officials of the State Bank of Pakistan (SBP), the Federal Board of Revenue (FBR), and the Federal Investigation Agency (FIA).

According to the petitioner said that the law is silent on whether a person accused of cryptocurrency fraud should approach a banking court or some other court. It is pertinent to mention here that the Sindh High Court while hearing petitions against the ban on cryptocurrency, has also constituted a team to discuss and report on the legal status of cryptocurrencies in the country.