Court Rejects Plea for Ban on Cryptocurrency and Digital Forex Trading

The Peshawar High Court has declared a petition seeking a ban on cryptocurrency and digital forex trading as ineffective. The court stated that cryptocurrency does not currently have legal status in Pakistan. Because of this, the petition did not raise a dispute that required judicial intervention.

The case was heard by a two-member bench of the Peshawar High Court. The bench included Justice Naeem Anwar and Justice Kamran Hayat Mian Khail. The petition was filed by Barrister Huzaifa Ahmed. Justice Kamran Hayat Mian Khail authored the eight-page judgment.

The petitioner argued that cryptocurrency and digital forex trading were openly taking place across the country. He said these activities were being promoted through social media platforms. He also pointed to training academies that allegedly encourage people to invest in such trading without proper regulation.

Court Rejects Plea for Ban on Cryptocurrency and Digital Forex Trading

According to the petitioner, these activities posed serious risks. He raised concerns about money laundering and terrorist financing. He claimed these threats could harm public interest and national security. Furthermore, he also stated that he had informed authorities such as the Federal Investigation Agency, the Securities and Exchange Commission of Pakistan, and the government. However, he alleged that no action was taken.

The petition asked the court to direct the government to regulate and monitor cryptocurrency-related business accounts. It also urged the state to introduce laws to prevent illegal online trading and money laundering. In addition, the petitioner requested that a notification issued by the State Bank of Pakistan be declared null and void.

The court, however, observed that there was no disagreement over the current legal position. Cryptocurrency has no legal recognition in Pakistan. The court noted that the State Bank’s circulars only warn financial institutions and the public to be cautious. These circulars do not declare cryptocurrency trading a criminal offence. They also do not impose any penalties.

See Also: Pakistan Introduces Three-Pillar Framework for Crypto Regulation

In its judgment, the court explained that regulating financial systems is a complex policy matter. Such decisions require expert input and careful consideration. The court said that matters related to regulation, bans, or penalties fall under the responsibility of the executive and the legislature. They do not fall within the direct role of the judiciary.

The court also pointed out that the government has already taken steps in this area. The introduction of the Virtual Assets Ordinance 2025 provides a framework for licensing and monitoring virtual assets. Because of this development, the court concluded that the petition no longer served a practical purpose.

As a result, the Peshawar High Court declared the petition ineffective and disposed of the case.