Ban on digital currency: SHC orders federal govt, others to submit replies

KARACHI: The Sindh High Court (SHC) on Wednesday ordered the federal government, the State Bank of Pakistan (SBP) and the Federal Investigation Agency (FIA) to submit their replies by November 5 to a petition pertaining to ban on the use of digital currency in the country.

A division bench of the SHC, headed by Justice Muhammad Iqbal Kalhoro, took up the petition challenging the ban on the use of digital currency in the country and directed the federal government, the State Bank of Pakistan (SBP) and the Federal Investigation Agency (FIA) to submit their detailed replies in the case on November 5.

He expressed his annoyance over prohibiting the use of cryptocurrency, saying Pakistan still lags behind the rest of the world in using modern technology.

Why is cryptocurrency outlawed in Pakistan when it is being used globally? he asked.

To this, an SBP lawyer replied that there was no ban on it in Pakistan, but it had not been regulated.

Justice Kalhoro further asked why cryptocurrency had not yet been regulated.

“If using digital currency doesn’t constitute an unlawful act, why is it not being allowed?”

The court directed the authorities to place on record international laws on cryptocurrency.

In a written reply submitted in the case, the central bank said it had already issued an advisory warning against trade in virtual currency as it was not a legal tender.

The petitioner stated that a ban had been imposed on the use of digital currency on April 6, 2018 despite the fact that the developing countries were earning significant revenue from cryptocurrency which didn’t pose any threat to the national interest.

The petitioner said that the FIA was taking action against those using digital currency in the country and pleaded the court to restrain it from this action.

Justice Kalhoro replied that the court would give the final verdict in the petition and would not give an interim relief.

Meanwhile, the SHC bench sought policy of the federal government about security of political leaders and ordered the interior ministry about the mechanism in this regard.

The SHC issued these orders in a petition pertaining to security of Pakistan People’s Party (PPP) chairman Bilawal Bhutto-Zardari, which stated that the Sindh government provided security to Bilawal, but the federal government didn’t cooperate in this regard.

Copyright Business Recorder, 2020