The Sindh High Court (SHC) Monday morning asked Finance Department, State Bank of Pakistan, Finance Department and Security Exchange Commission of Pakistan (SECP) to explain why crypto currency isn’t allowed within the country.
The court ordered Finance Department, State Bank of Pakistan, Finance Department and Security Exchange Commission of Pakistan to help the court in determining the best way to allow crypto currency to be regulated and allowed within the country.
In a hearing on a petition to limit on the trading of virtual currencies. The SHC’s division bench led by Justice Mohammad Karim Khan Agha noted that worldwide, cryptocurrency was now an accepted means of transacting.
The court noted that in the first instance in many nations. It is evident that the banks and their exchange commissions, creating safeguards for ensuring that usage of cryptocurrency is permitted. But with restrictions to ensure that the financing of terrorists, money laundering and other banking transactions that are illegal are prevented.
The court noted that Pakistan must move forward and take on crypto currency-related business, or not, and regulate it. Court ordered the deputy governor of the SBP who is aware of the market for crypto currency. However, The way it is regulated by other nations, to come on the spot. Explain what SBP did in order to ease the flow of business while setting suitable regulations for this.
The directors of SECP and the secretary of finance were also instructed to help the court in the question. Petitioner Waqar Zaka argued that crypto currency was built on decentralised digital currency. Such regulating mechanisms are in place in connection with cybercrime. Which was being monitored by the Federal Investigation Agency was monitoring.
He said that there are several unregulated entities in the this country. That are operating cryptocurrency-related business in a shady manner. Therefore, It could pose a risk of money laundering , terrorist financing as well as other criminal acts.
The court also ordered director FIA Cyber Crime Circle to be present in person. Submit his remarks on the regulation of cryptocurrency exchange market in the country. What actions should be taken, if the FIA is taking against people who operate in an non-regulated cryptocurrency business.