In their report submitted to the Sindh High Court, the federal government and the State Bank of Pakistan have recommended a slap a complete ban on the cryptocurrency, while the court has sent the report to the ministries of law and revenue for the perusal of all legal aspects involved in this business.

The Sindh High Court on Wednesday heard a case regarding regularizing the cryptocurrency business in Pakistan.

During the hearing, a report from the federal government and State Bank was submitted before the court which recommended a complete ban on cryptocurrency in the country.

According to the report, nobody could be allowed to indulge in digital money business as it was illegal.

The court ordered to send the report to the treasury and law ministries so that both the ministries take into the consideration all legal aspects of the crypto business.

The Sindh High Court directed the ministries to decide about the legal position of the digital money business in three months.

Justice K K Agha said in case of outlawing the business, the government should also appraise the court; and in case of regularizing it, a legal framework must be prepared.

The law enforcement agencies should themselves determine the status of cryptocurrency, the court directed, adding that the concerned institutions should take action according to law.

Earlier, a two-judge bench of the Sindh High Court headed by Justice Muhammad Iqbal Kalhoro sent the cryptocurrency case back to the bench comprising Justice K K Agha who previously heard the case.

During hearing, Justice Kalhoro remarked that thousands of people have lost their money in the cryptocurrency fraud.

However, petitioner Waqar Zaka contended that nobody was being swindled, saying that people were spreading rumours only. He said Japan too had legalized the cryptocurrency and America and other countries had accepted this software-based business. He lamented that the FIA was registering cases against people doing cryptocurrency business.

After hearing his arguments, Justice Kalhoro sent the case back to Justice K K Agha’s bench.

This report was first published in Business Recorder on Jan 13, 2022.