- The court gave the government two months to stop illegal crypto trading in Pakistan.
- Training centers promote crypto trading without legal approval on social media platforms.
- Authorities failed to act against illegal crypto activities despite clear warnings and complaints.
The Peshawar High Court has directed the federal government to eliminate illegal cryptocurrency trading nationwide. The court established two months as the maximum time frame for required action. The authorities need to establish a definitive plan directed at controlling unregulated crypto operations while prioritizing the Khyber Pakhtunkhwa region.
The judicial panel which included Justice Syed Arshad and Justice Dr. Khurshid Iqbal delivered this judgment. A petition submitted by Barrister Huzaifa Ahmad led to this legal order. He highlighted the unchecked spread of digital currency operations across Pakistan. He emphasized that digital assets continue to circulate without proper oversight or legal framework.
Government Must Submit Policy Plan
The court also instructed the government to submit a detailed report outlining measures to stop illegal crypto trade. The Deputy Attorney General, Bilal Durrani, represented the federal government in the hearing. He confirmed that policy development is underway but requires more time for completion.
Acknowledging this, the bench provided an extension of two months. This period allows the authorities to prepare comprehensive legislation and enforcement plans. The goal is to tackle both online and offline platforms promoting illegal cryptocurrency transactions.
Petition Highlights Serious Risks
The petitioner pointed out several alarming trends. He revealed that traditional teaching institutions, including coaching centers and training academies, offer cryptocurrency and Forex trading services.
According to the petitioner, such operations continue to collect, freeze, and withdraw funds online. He noted that multiple complaints to concerned authorities have gone unanswered over the years. This inactivity has allowed illegal activities to thrive unchecked.
State Bank Declared Crypto Transactions Illegal
In 2018, the State Bank of Pakistan declared digital currencies unauthorized for buying or selling goods. The bank instructed all financial entities to avoid processing or promoting virtual currencies like Bitcoin, Litecoin, and others. Despite these directives, unregulated crypto trading remains active in various regions.
The petitioner further explained that these training academies are not registered with the Securities and Exchange Commission of Pakistan. According to regulations, any entity offering such services must register under securities exchange laws. Failure to do so risks misuse of digital assets.
Concerns Over National Security and Financial Crimes
The petitioner urged the court to execute strict regulations against unregulated crypto trading because it represented potential threats for money laundering and terrorist funding activities. The petitioner emphasized that such illegal activities threaten national security by compromising its stability. He requested the court to force the government to pass robust legislation that combats illegal crypto operations.
He emphasized that authorities must shut down unpermitted training centers while executing specific measures. The case remains open, with the next hearing expected after the government submits its policy report.
