Court notes there is no dispute cryptocurrency currently has no legal status in country
A lawyer walks past in front of the Peshawar High Court building. PHOTO: AFP
The Peshawar High Court has declared ineffective a petition seeking a ban on cryptocurrency and digital forex trading in Pakistan.
The bench, comprising Justice Naeem Anwar and Justice Kamran Mian Khail, heard the petition filed by Barrister Huzaifa Ahmed, with the eight-page judgment authored by Justice Kamran Hayat Mian Khail. The petitioner argued that online cryptocurrency and digital forex trading were openly taking place across the country, supported by social media campaigns and so-called training academies.
He urged the authorities to curb these activities, citing risks such as terrorist financing and money laundering that could threaten public interest and national security. The petitioner said he had informed the Federal Investigation Agency (FIA), the Securities and Exchange Commission of Pakistan (SECP) and the government, but claimed that no action was taken.
The petition called for the formal regulation and monitoring of cryptocurrency business accounts and urged the government to legislate laws to prevent money laundering and illegal online trading activities. It also sought a declaration that the State Bank of Pakistan’s notification on the matter be declared null and void.
However, the court noted that there was no dispute that cryptocurrency currently has no legal status in Pakistan. Existing circulars issued by the State Bank only caution financial institutions and the public to exercise care, without criminalising the trade or prescribing penalties.
The judgment emphasised that regulating financial activities and preventing the misuse of cryptocurrency is a complex policy matter requiring expert deliberation. The court observed that while the petitioner sought a ban and legal action, such relief falls within the domain of the executive and the legislature, not the judiciary.
Since the government has already introduced the Virtual Assets Ordinance 2025, which provides a regulatory framework for licencing and monitoring, the High Court concluded that the petition had become ineffective.
