Cryptocurrency legal status: LHC orders SBP to hold consultative sessions

LAHORE: The Lahore High Court (LHC) has directed the State Bank of Pakistan (SBP) to consultative sessions across the country in the presence of all parties to discuss matters related to legalising cryptocurrency, ARY News reported on Friday.

The Lahore High Court (LHC) Justice Jawad Hassan heard a case related to granting legal status to cryptocurrency in Pakistan.

The State Bank of Pakistan (SBP) has been ordered to organise consultative sessions across Pakistan besides ensuring the presence of all parties to review legal aspects of giving legal status to cryptocurrency.

A representative of the central bank has appeared in the hearing over court orders. The SBP representative informed that three sessions have been summoned for reviewing the legal status of cryptocurrency.

READ: SBP WARNS BANKS, GENERAL PUBLIC AGAINST USE OF CRYPTOCURRENCIES

The amicus curiae told the court that the cryptocurrency could not be termed illegal and it is required to regulate it.

Justice Jawad Hassan remarked that the court will have to save the national institutions. “Who will be caught if someone defrauds the nationals after declaring the cryptocurrency legal,” observed the LHC judge.

The judge continued that the central bank will face the consequences of any fraud with the nationals. He remarked that everyone has witnessed the consequences of a move for not regulating the private housing societies.

The high court said that a mechanism must be in place to monitor those who are receiving deposits from the nationals.

READ: ‘SBP WORKING ON CRYPTOCURRENCY REGULATION’

Justice Hassan ordered the central bank to resolve the cryptocurrency issue after holding consultations with the stakeholders. The sessions should be conducted in Lahore, Karachi and Islamabad besides presenting a copy of the proceedings to the court, he added.

Later, the LHC adjourned the hearing till January 19.

Earlier in December, Federal Minister for Information Fawad Chaudhry had said while bringing clarity on the use of the cryptocurrency that there are no chances of Pakistan legalising digital currency anytime soon.

“There are no guarantees behind the currency and we cannot allow the use of any digital currency just on the basis of its trust level in the market.”.

While citing another reason behind not allowing the use of crypto in the country, Fawad Chaudhry had said that the level of fluctuation in the cryptocurrency is unprecedented globally.

“We are also bound through FATF conditions to refrain from allowing any such mode of payment in the country,” he had said. The information minister, however, added that ultimately the world has to move towards the mechanism of digital payments.