The High Court of Sindh, Pakistan’s highest judicial authority in Sindh Province (SHC), has requested that the government come up with regulations for cryptocurrency.
According to The Express Tribune, The SHC issued the instruction during the hearing of a petition challenging the legality and legality for the country’s crypto ban.
The SHC directed regulators like the Securities and Exchange Commission of Pakistan, (SECP), and the central bank that they work with government agencies such the Ministries of Information Technology and Law in order to develop crypto regulations within three month.
The SHC requested that the SHC submit a report detailing the steps taken in order to regulate cryptocurrency within the same time frame.
Cointelegraph reported that the SECP is currently considering crypto regulations as of November 2020.
According to reports, the government is considering cryptocurrency consultations in order to combat money laundering and terrorist financing, especially given the Financial Action Task Force’s pressure.
On Wednesday, the SHC instructed Sindh to seek recognition for cryptocurrency in Pakistan.
In December 2020, the Khyber Pakhtunkhwa assembly urged the federal government to legalize cryptocurrency. The lawmakers cited the wide-based adoption of digital currencies as a sign that cryptocurrencies could replace fiat in the near future.
Related: Pakistan’s central banking is ‘carefully examining’ CBDCs, according to governor
Khyber Pakhtunkhwa (another of Pakistan’s four provinces) announced plans in March to pilot crypto mining farms within the region.
The State Bank of Pakistan (SBP) is currently studying central bank digital currencies, just like other central banks around the globe.
The court requested that participants present legal points in a separate case relating to crypto-related matters before the Lahore High Court. This involved stakeholders like the SECP, SBP, and the federal government.
Lahore, the capital of Punjab (another of Pakistan’s four provinces), is where you will find this article.