A high profile Government Official of Pakistan has told the country’s High Court that the Government hasn’t placed any embargo upon anyone interested in buying virtual currencies locally or through offshore companies for investment. It was the High Court which had sought explanation from the Pakistani Government in the matter of crypto trading in the country. The Court has now requested the Federal Government to constitute a committee for the purposes of regulating virtual currencies in the country.
Lahore High Court, which is the Court in Pakistan had summoned the Federal Government of Pakistan to explain on the issue of crypto trading. The High Court has been entrusted with a case which talks about the existence of virtual currencies in Pakistan. Though High Court is aware of cryptocurrencies but to them and for the most of Pakistanis, crypto concept is quite afresh. However, crypto does exist in Pakistan and many of the citizens are investing in them.
The case involved filing of a writ petition in which a complainant had complained that his money was embezzled by crypto fraudsters. Usually, the cases of fraud and cybercrimes fall within the exclusive domain of Federal Investigation Agency of Pakistan (FIA). However, FIA told the Court that it does not possess the knowledge how cryptocurrencies operate. Resultantly, the complainant had to resort to the High Court for invoking writ jurisdiction for redressal of his grievance.
During Court proceedings, FIA along with other relevant authorities, apprised the Court that they don’t know how to deal with virtual currencies. They argued before the Court that there are no regulations in the country governing virtual assets. In these circumstances, they are unable to help the complainant. On this argument, the Court then issued notices to the federal government and sought explanation in the matter.
When the official from the federal government appeared before the Court, he too explained that there is no law on crypto. The Court then questioned the official what is the status of crypto in Pakistan? Are they banned or whether they are declared illegal? In response the official said that as per his knowledge, crypto hasn’t been declared illegal nor legal. In fact, there hasn’t been any specific ban or embargo imposed either by Federal or any provincial government(s) on crypto. People are free to utilize their funds wherever they want. If they want to purchase cryptocurrencies from offshore companies, they are not prevented from doing so.
The official was Ali Muhammad Khan who is the Federal Minister for Parliamentary Affairs.
The Court requested the Federal Minister that crypto is known globally. There is huge majority in the world who are investing their funds into cryptocurrencies. So, it seems a good opportunity for the people of Pakistan as well to acquire cryptocurrencies for investment purposes. It would be wise if a Parliamentary Committee is constituted with the task to look at the cryptocurrencies.