Bitcoin and cryptocurrency enthusiasts in Pakistan has some good news to cheer on this week. A high court ruled in favor of the new industry while preceding over an appeal case that kicked against a blanket ban on the use of cryptocurrencies in the county.
Since April 2018, the State Bank of Pakistan (SBP) has constrained the growth and usage of cryptocurrencies. The central bank issued a circular barring financial institutions from offering its services to individuals or businesses dealing with cryptocurrency. Any such transactions were to be reported to authorities “as a suspicious transaction,” the circular demanded.
However, according to local media reports on Wednesday, The Sindh High Court (SHC) listened to an appeal kicking against the SBP ban on bitcoin and cryptocurrency usage in Pakistan. The petitioner had questioned why the blanket ban was allowed to stand when other countries didn’t take the same measures but were instead earning significant revenue from the young industry.
During the court session, Justice Muhammad Iqbal Kalhoro detailed that Pakistan was already lagging behind other countries when it came to adopting new technologies and shouldn’t risk falling further behind. He reportedly asked:
If using digital currency doesn’t constitute an unlawful act, why is it not being allowed?
A legal representative for the SBP sought to clarify that they did not outlaw cryptocurrencies, but had only warned citizens since there were no regulatory measures in place.
The blanket ban still stands in the meantime. Nevertheless, Justice Muhammad Iqbal Kalhoro requested that both the Federal government, the central bank, and the Pakistani Investigation Agency (FIA) provide a detailed reply when the case is heard again on November 5. He requested that these authorities include in their response, international laws governing the use of cryptocurrency.
A favorable ruling for cryptocurrencies in subsequent hearings could eventually lead to the legalization of these digital assets in Pakistan, thus opening the way for mass adoption in a country with over 200 million people.
