The Pakistani government is pressing for a complete ban on cryptocurrency activities such as trading and mining, according to a report presented to the Sindh High Court (SHC) today and published by local news site Samaa.
The State Bank of Pakistan (SBP) and the federal government together filed a report stating that engaging in crypto-related activities is illegal in Pakistan and that the asset class should be prohibited.
According to the text, anyone found breaking the law should be punished in the same way that other countries do.
Various nations, including China and Saudi Arabia, have prohibited investment in cryptocurrencies like bitcoin and ether due to their role in assisting illicit operations, according to the reports.
The paper also highlighted recent Federal Investigation Agency (FIA) investigations into OctaFX and Binance, the world’s largest cryptocurrency exchange, as well as the hazards that digital assets represent to investors.
The court ordered that the paper be delivered to the Ministry of Finance and the Ministry of Law in response to the government’s push to entirely ban crypto activity in the country.
In the next three months, the court will decide if the proposed crypto prohibition falls within the scope of the constitution, according to the court.
Should the ministries support the ban, the court has asked to be informed of the ban’s constitutional status.
Waqar Zaka, a crypto advocate, asked the court to declare the asset class legitimate, noting that countless Pakistanis are intrigued in it.
The case was delayed by the SHC until April 12, 2022. Pakistan’s intention to enacting a total ban on cryptocurrency activity has been reaffirmed by this development.
The Pakistani government imposed a total ban on cryptocurrency in 2018. Some Pakistani residents were dissatisfied with the ban and filed a petition with the SBP, seeking that all limitations on the asset be lifted.
On October 20, 2021, the court removed the restriction and established a committee, chaired by Pakistan’s Federal Secretary of Finance, to ensure that the judgment is properly implemented.