Peshawar:
The High Court of Peshawar (PHC) ordered the federal government to formulate a policy within two months concerning illegal affairs and cryptocurrency trade across the country, including Khyber Pakhtunkhwa. He also ordered the government to submit a report.
A division bench composed of judge Syed Arshad Ali and judge Dr Khurshid Iqbal issued this order while hearing a request filed by Barristor Huzaifa Ahmad, who represented himself before the court. Vice-prosecutor General Bilal Durrani represented the federal government.
The petitioner argued that in this era of technology, the concept of digital money has appeared, through which money is digitally transferred. However, there is no regulation or legal framework to control these currencies.
He said Pakistan State Bank, thanks to a notification issued in 2018, said these illegal online commercial activities. Despite this, many people continue to operate on various digital platforms.
According to the petitioner, not only coaching centers and training academies operate in KP supply services linked to cryptocurrency and Forex trading, but they are also promoted through social media platforms such as Tiktok, Facebook and Youtube.
These academies work illegally without any government follow -up.
The petitioner said that operators and traders could collect, remove and freeze the funds online, and that the authorities concerned are aware of this illegal trade but have taken no measure to arrest him. He said he had written to the authorities concerned in this regard but had received no response.
He said that in accordance with the rules of the Securities and Exchange Commission of Pakistan (SECP), these entities should be registered under the securities grant rules.
However, these digital applications and training academies are not registered, even if they could serve as a source of tax revenue for the Federal Board of Return (FBR).
He also warned of the risks of money laundering and terrorism financing through digital currency. This type of trading, he said, could constitute a threat to national security, because it could be used for terrorism, game and other anti-state activities
“Consequently, it is the responsibility of federal and provincial governments to ban these illegal companies and to close the institutions and academies involved in the Crypto and Forex trade.”
He asked the bench to ask the government to legislate against such illegal companies and to order the Federal Inquiry Agency (FIA) and other competent authorities to take measures.
The deputy prosecutor general informed the court that the federal government was under legislation. He asked for a month of time.
In response, the bench granted the government two months. The court then postponed the hearing while ordering the federal government to present a policy within the given period.
