Legal status of cryptocurrency: LHC forms committee

LAHORE: The Lahore High Court (LHC) has constituted a committee to present its opinion and recommendations on the legal status of cryptocurrency in Pakistan.

The body comprises officials of the State Bank of Pakistan (SBP), the Federal Board of Revenue (FBR) and the Federal Investigation Agency (FIA).

Also Read: ‘SBP working on cryptocurrency regulation’

A single bench comprising Justice Jawad Hassan took up a petition filed by a person, Dr Muhammad Zafar, accused of cheating the public at large in the name of investment in cryptocurrency.

He approached the high court after a banking court rejected his bail plea. The court restrained the banking court from taking any coercive action against him till further orders.

During the hearing, the judge questioned how cryptocurrency is being dealt with internationally. He directed the court FBR representative to explain how tax on the digital currency would be collected.

Also Read: Cryptocurrency prone to illegal use, SBP tells court

The petitioner’s lawyer stated that it is not clear what is the legal status of cryptocurrency and who is to regulate it. The law is silent on whether a person accused of a cryptocurrency fraud should approach a banking court or some other court. The court adjourned the case for an indefinite period.

It is pertinent to mention here that the Sindh High Court, while hearing petitions against the ban on cryptocurrency, has also constituted a team to discuss and report on the legal status of cryptocurrencies in the country.