Cryptocurrency prone to illegal use, SBP tells court

KARACHI: The Sindh High Court (SHC) on Monday resumed hearing a petition challenging a ban on the use of cryptocurrency in the country.

A bench of the high court directed State Bank of Pakistan (SBP) deputy governor, Federal Investigation Agency (FIA) cybercrime director and officials of the Securities and Exchange Commission of Pakistan (SECP) and finance department to appear in person at next hearing.

The court summoned reports about legislation on the use of virtual currency and action taken against companies involved in illegal currency business.

“Who did ban cryptocurrency?” asked Justice KK Agha, a member of the bench.

“Has the State Bank imposed the ban? Why has it banned?”

READ: State Bank of Pakistan warns against trade in digital currencies

A counsel for the SBP replied that virtual currency is prone to illegal use.

The bench then questioned whose duty is to check its illegal use. The court adjourned the case until October 19.

In a written reply submitted last year in Sept, the central bank opposed the use of digital currency in the country saying it has already issued an advisory warning against trade in virtual currency as it is not legal tender.

The petitioner stated that the State Bank imposed a ban on the use of digital currency on April 6, 2018 despite developing countries are earning significant revenue from the cryptocurrency which doesn’t pose any threat to national interests.