On Dec 2nd, The Khyber Pakhtunkhwa (KP) Assembly in Pakistan passed a resolution. It is calling the Pakistan Federal Government to address the legal matters of Cryptocurrency in the country. Waqar Zaka, a crypto evangelist, has been making headlines for the right reasons as he leads the petition. He is advocating the need for the Pakistan government to legalize cryptocurrencies in the country, mentioning the hearing’s date as Dec 17th, 2020.
The Sindh High Court responded to the petition (CP 7146/2019) filed by Waqar Zaka, urging that the government, Finance Minister, and the FIA Cyber Crime to respond to the petition by that date; otherwise, the government will lose the case, and cryptocurrencies will be legalized in the country. The federal government may build a defense on the hearing date, but there is still progress.
Pakistan at Risk of being Blacklisted
Zaka pointed out why crypto must be legalized in Pakistan in a hearing presided over by a two-member bench of the court steered by Justice KK Agha & Mrs. Kausar Sultana. Zaka said Pakistan is not registered for digital services such as PayPal following the dragging regulations. He also added that Pakistan risks being blacklisted by significant digital currencies marketplaces, as major companies are now withdrawing from the business.
Zaka also said that the FIA Cyber Crime wing illegally arrests Crypto miners, retaining their valuable Bitcoins, filing an FIR with no sections for crypto but false claims that the State Bank of Pakistan (SBP) has declared crypto illegal. At the same time, State Bank’s advocate stated in the court that SBP could not ban crypto mining as parliament has not allowed such authority.
Will The Country Finally Legalize Cryptocurrencies?
In the recent position paper regulating crypto platforms released by the Securities and Exchange Commission of Pakistan, the authors noted several approaches to controlling digital assets. The government will follow a procedure “described by the Commodity Futures Trading Commission (CFTC) as the ‘do-not-harm’ approach.” The authors submitted questions on trading, intermediaries, settlement, and risks while also inviting people’s reactions.
Cryptocurrencies are being adopted worldwide as a free-flowing currency, and its future seems bright, but Pakistan’s position has been to outright ban it. Cryptocurrency adoption makes services efficient and further promotes privacy. As the digital age advances, crypto is already significant in the finance industry, and adopting it is vital if Pakistan wants to keep up with the future of the global economy.