PHC orders govt to make crypto currency policy

PESHAWAR: The Peshawar High Court (PHC) has ordered the federal government to develop a strategy within two months to curb unlawful cryptocurrency trading across the country, including Khyber Pakhtunkhwa. It has also required the government to submit a report.

A division bench comprised of Justice Syed Arshad Ali and Justice Dr Khurshid Iqbal delivered this ruling while hearing a petition submitted by Barrister Huzaifa Ahmad, who represented himself in court. The Deputy Attorney General, Bilal Durrani, represented the federal government.

The petitioner stated that in this technological era, the notion of digital currency has evolved, which allows money to be moved digitally. However, no legislation or legal structure exists to govern such currencies.

He stated that the State Bank of Pakistan ruled such internet commercial operations unlawful in a notification released in 2018. Regardless, many people continue to use various internet channels.

According to the petitioner, coaching centers and training academies in the K-P not only provide Bitcoin and forex trading services, but they are also marketed on social media platforms like TikTok, Facebook, and YouTube.

The petitioner claimed that operators and traders may collect, withdraw, and freeze cash online and that the appropriate authorities are aware of the illicit transactions but have taken no action to stop it. He stated that he had written to the relevant authorities in this respect but received no answer.

According to the guidelines of the Securities and Exchange Commission of Pakistan (SECP), such firms must be registered under securities exchange laws.

However, these digital apps and training academies are not registered, even though they may serve as a source of tax income for the Federal Board of Revenue (FBR).

He also cautioned about the dangers of using digital currency for money laundering and terrorist financing. This type of trade, he stated, might represent a threat to national security since it could be utilized for terrorism, gambling, and other anti-state activities.

“Therefore, it is the responsibility of the federal and provincial governments to ban such illegal businesses and to shut down the institutions and academies involved in crypto and forex trading.”

He requested the court to require the government to pass legislation prohibiting such illegal companies and to force the Federal Investigation Agency (FIA) and other relevant agencies to act.

The deputy attorney general informed the court that the federal government is currently developing legislation. He requested one month time.

In response, the bench allowed the government two months’ time. The court later postponed the hearing and directed the federal government to provide a policy within the time frame provided.