According to a report submitted to the Sindh High Court (SHC) today as published by local news outlet Samaa, the Pakistani government is pushing for a complete ban on cryptocurrency activities such as trading and mining.
The report, jointly submitted by the State Bank of Pakistan (SBP) and the federal government, noted that engaging in crypto-related activities in Pakistan is illegal and as such the asset class should be banned.
The document requested that anyone found violating the law should be penalized like other countries are doing.
Notably, details of the reports cited various countries like China and Saudi Arabia that have banned investment in cryptocurrencies such as bitcoin and ether, due to their use in facilitating illicit activities.
Furthermore, the report also highlighted recent investigations by the Federal Investigation Agency (FIA) against OctaFX and world’s largest cryptocurrency exchange Binance, while stating the risks digital assets pose to investors.
Following the government’s push to completely ban crypto activities in the country, the court directed that the document be sent to the Ministry of Finance and the Ministry of Law.
This, according to the court, would determine whether the proposed crypto ban is within the purview of the constitution in the next three months.
However, should the ministries back the ban, the court requested that it be informed about the constitutional status of the ban.
In cryptos’ defense, Waqar Zaka pleaded with the court to declare the asset class legal, adding that several Pakistanis are interested in them.
The SHC adjourned the case to April 12, 2022.
Battle Against Cryptos in Pakistan
The development reiterates Pakistan’s commitment to place a blanket ban on cryptocurrency activities.
In 2018, the Pakistani government initially placed a blanket ban on cryptocurrencies. Not pleased by the ban, some Pakistani residents filed a petition against the SBP, requesting that all restrictions against the asset be lifted.
The court finally lifted the ban on October 20, 2021, and also set up a committee, headed by Pakistan’s Federal Secretary of Finance, that will be tasked with ensuring the order is rightfully carried out.
