The government has been urged by the High Court of Sindh (SHC), Pakistan’s highest judicial authority, to come up with bitcoin regulatory mechanisms.
The Supreme Court of Pakistan (SHC) has directed regulators such as the Securities and Exchange Commission of Pakistan (SECP), and the central bank to create crypto rules in three months in collaboration with government departments such as the Ministries of Information Technology and Law.
The SHC also demanded that a report on the actions taken to regulate cryptocurrencies be present within the same time frame as the proceedings.
Since November 2020, the SECP has been reviewing crypto rules, as previously reported.
The government is allegedly consulting on cryptocurrencies. In order to combat money laundering and terrorism funding, particularly in light of demands from the Finance Action Task Force.
Cryptocurrency is on its way to replacing fiat money
Sindh is the latest province to demand that cryptocurrencies acquire recognition in Pakistan, after the SHC’s directive on Wednesday.
The Khyber Pakhtunkhwa legislature demanded that crypto be legitimate in December 2020. At the time, politicians cited the widespread acceptance of digital currencies. As evidence that cryptocurrencies were on their way to eventually replace fiat money.
Another of Pakistan’s four provinces, Khyber Pakhtunkhwa, revealed intentions to trial crypto mining farms in the region in March.
Meanwhile, the State Bank of Pakistan (SBP) is researching central bank digital currencies. As are many other central banks across the world.
The court urged parties in a second crypto-related lawsuit before the Lahore High Court. Which involved stakeholders such as the SECP, SBP, and the federal government. To make legal points on the subject in upcoming sessions.