Crypto an unsolved mystery for Pakistan

Cryptocurrency no doubt is one of the booming industries and is making progress on daily basis. However, for some countries, such as Pakistan, it is still a mystery that is to be unveiled with time. But there is a restraint on the part of the Pakistani Government. The Government is not willing to recognize the true colors of crypto, which have been observed in a petition filed before a Pakistani High Court.

The petition is filed against limiting the use of cryptocurrencies and crypto transactions in Pakistan. The petition is pending before a Division Bench of the Sindh High Court. One of the judges on the Division Bench has asked explanations from the Finance Ministry, Central Bank of Pakistan and financial regulator namely Securities & Exchange Commission of Pakistan. They have been asked to throw light as to why cryptocurrency, which has become a globally accepted mode of transaction, is facing restraint in Pakistan. In addition, the Court wants to know in what ways crypto transactions can be governed and accepted under Pakistani law.

While hearing the petition, the court observed that crypto payments are globally accepted modes of transaction. Even the crypto transactions involve proper banking channels. This then minimizes the risks that the funds are sent to genuine beneficiaries instead of terror financing or money laundering, observed Court.

The High Court further observed that non-recognition of crypto in Pakistan by relevant authorities is paving a way for black market. The Court said that the non-acceptance of crypto transactions in Pakistan by central banks etc. is actually promoting black market culture. Pakistan should embrace new ways of executing transactions, even if they involve online mediums or crypto mediums.

The petition was being filed by a social activist of Pakistan namely Waqar Zaka. He drew the attention of the Court towards the growing popularity of crypto around the world. He said that crypto is now accepted in most of the countries. However, the Pakistani Government is showing restraint without any reason at all. Even crypto usage is legalized in Pakistan then there are bodies in the country that can oversee the usage of crypto. For instance, Federal Investigation Agency (FIA) is the authority which normally looks at the cyber space. If someone would be using crypto to his own benefit or misusing the same, then FIA is equipped to deal with such cases, said Zaka.

Zaka further added that there are certain mafias in the country which are involved in crypto. However, the Government and its functionaries are not aware of them. Because of these mafias, grave loss to the exchequer has already been caused, said Zaka.

The High Court ordered the FIA’s director of Cyber Crime Wing to provide a certain explanation. For instance, the Court wants to know how online crypto transactions can be brought under the ambit of governing cyber laws. In addition, the Court asked FIA to explain why no action has been taken against crypto mafia.