According to reliable sources, the State Bank of Pakistan (SBP) and the federal government have recently decided to ban the usage of all cryptocurrencies in the country.
The central bank has filed a report to a panel of the Sindh High Court (SHC) tasked with hearing and administering rulings on the country’s cryptocurrency usability and sustainability. Cryptocurrencies are banned and cannot be traded, as per the report.
The report will be referred to the finance and law ministries for a final decision, according to the Sindh High Court. The law and finance ministries are expected to decide soon whether a ban on cryptocurrency is permissible under the Constitution.
The Sindh High Court has also ordered the law and finance ministries to conduct a joint study of cryptocurrencies and submit a comprehensive report justifying whether the financial instrument should be outright banned or allowed to function as a legitimate store of value under a legal framework that is acceptable.
Moreover, the highest Sindh court wants the report to look at all possibilities in order to permanently resolve the uncertainties surrounding the future of cryptocurrencies in Pakistan.
This comes little over three months after the Sindh High Court ordered the government to regulate cryptocurrencies and create a committee to monitor the processes under the federal secretary of finance.
On April 12, the report is anticipated to be presented before the Sindh High Court.
In the absence of legislation and procedures to oversee the use of these digital currencies for trade, the position of cryptocurrencies in Pakistan has been in limbo.
The Sindh High Court had also ordered the federal government to regulate cryptocurrencies within three months on October 20, 2021.
