As it heard a plea requesting that the court declare a State Bank of Pakistan decision null and void, the Sindh High Court on Wednesday directed the government to create a high-level committee to evaluate the legal status of cryptocurrencies.
The court stated that steps to regulate cryptocurrencies should be taken in consultation with all stakeholders, including representatives from the Securities and Exchange Commission of Pakistan (SECP), State Bank of Pakistan (SBP), Ministry of Law, Ministry of IT, Pakistan Telecommunication Authority (PTA), and petitioner Waqar Zaka
In his appeal to the court, Zaka claimed that the SBP governor had instructed banks and payment system operators to “refrain from processing, utilizing, trading, holding, transferring value, promoting, and investing in virtual currencies/tokens” in a notification dated April 6, 2018.
The petitioner requested that the court deem the notice void, claiming that it breaches Articles 4 and 18 of the Constitution.
He also asked for an injunction against the Federal Bureau of Investigation from taking action against persons who run digital currency firms.
Members of the FIA, the SBP deputy governor, and the petitioner were present during today’s court hearings.
The court noted that efforts to regulate cryptocurrencies should be done in collaboration with all stakeholders, including representatives from the Security and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan (SBP), the Ministry of Law, and the Ministry of Information Technology.
The petitioner was ordered by the court to assist the committee and make recommendations to it.
The committee’s first meeting will be on October 25, according to the court, following which it will convene every two weeks.
Furthermore, the court has ordered the FIA to refrain from pursuing action against individuals who trade in digital money and has requested a report from Director Sanaullah Abbasi of the FIA at the next hearing.
The committee’s proceedings must be kept confidential, and no member of the committee may divulge any facts about the case on social media or any other forum.
The court further stated that the committee’s work should not be halted if one of its members is unavailable.
The court stated, “The SECP will continue to take action against unlawful exchanges.”
The petition was delayed until the second week of January 2022, and all committee members were ordered to present at the next hearing with their reports.