Pakistan’s Sindh High Court Gives 3 Months to Government for Cryptocurrency Regulation


Pakistan’s Sindh High Court has directed Prime Minister Imran Khan’s government to expedite the regulation of cryptocurrencies. Pakistan’s ruling government has been given a three-month deadline to submit the proposed regulatory rules. To expedite the pace of this work, a new committee has been constituted under the chairmanship of Kamran Ali Afzal, Federal Finance Secretary of Pakistan. The court has advised the government to invite suggestions from all stakeholders as well as government officials and ministries.

The court’s direction to the Pakistani government came after a two-judge hearing on a petition challenging the ban cryptocurrency. Along with the petitioners, whose details are unknown, officials from the country’s Federal Investigation Agency (FIA) and State Bank of Pakistan (SBP) also attended the hearing.

Pakistan’s central bank Reza Baqir said in April that authorities were studying ways to regulate cryptocurrencies and their ability to facilitate off-the-book transactions within the legal framework.

The crypto-culture being started by the Pakistani authorities appears to have come at a time when the crypto-culture is progressing in the country.

In the 12 months leading up to June 2021, the cryptocurrency market grew by 706 percent and reached a value of $572.5 billion (approximately Rs 42,62,844 crore) in the regions of Central and Southern Asia as well as Oceania (CSAO). report good Research firm Chainalysis recently claimed.

In Asia, Pakistan ranks third after Vietnam and India in terms of widespread crypto adoption. In addition, Pakistan is also ranked 15th in the world crypto adoption According to another report.

Chainalysis report estimates that Pakistan received over $1.5 billion (about Rs 11,230 crore) in crypto-cash last year.

Discussions about the expansion of the crypto space in Pakistan are also beginning to intensify. For example, in a recent session of the National Assembly, politicians in Pakistan cited the example of India in breathing the crypto space and making profits in return.

“More than 56 million people are using cryptocurrencies in 2021. Our neighbor India has created four crypto exchanges, among which, the native token of WazirX has a market share of over $172 million (approximately Rs 1,287 crore) globally. A Pakistani politician recently told the assembly in Hindi.

Along with Pakistan, India is also working on ways to regulate decentralized currencies.

India awaits the outcome of an official draft cryptocurrency bill that will be introduced in the upcoming winter session of Parliament.

In September, a new committee was formed under India’s Ministry of Finance to find out whether income from crypto-trading could be taxed.

Amidst the growing crypto culture, Indian Finance Minister Nirmala Sitharaman has been ignore the draft Cryptocurrency Bill.

Meanwhile, the Reserve Bank of India (RBI) is also working on launching its official digital currency as a regulated “central bank digital currency (CBDC)” by the end of 2021.

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