PESHAWAR: Peshawar High Court has dismissed a petition challenging the illegal trading of cryptocurrency and digital forex in Pakistan. The court in its ruling declared that cryptocurrency currently does not hold any legal status in the country.
Justice Kamran Hayat Miankhel, after hearing the petition, issued a written verdict in which he stated that the government had introduced the Virtual Assets Ordinance 2025. This ordinance outlines the regulatory framework for licensing and regulating digital assets. Consequently, the petition was deemed to have become ineffective, and the court ruled that the petition be dismissed.
The court’s decision clarified that, while cryptocurrency does not have legal recognition in Pakistan, the State Bank of Pakistan (SBP) had only issued advisories and circulars to inform financial institutions and the public to exercise caution when engaging in such activities. The court noted that these circulars did not explicitly state that cryptocurrency trading is a criminal activity or that there are legal penalties associated with it.
The written decision further explained that the regulation of cryptocurrency and digital forex trading is a matter of policy and legislation, which falls under the jurisdiction of the government and legislature, not the judiciary.
The ruling also addressed concerns raised by the petitioner regarding the potential risks of money laundering and terrorist financing associated with cryptocurrency trading. The government has already introduced a regulatory framework under the Virtual Assets Ordinance 2025 to mitigate these risks.
In conclusion, the court reaffirmed that with the introduction of the 2025 policy, the petition had become irrelevant and was consequently dismissed.
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