Cryptocurrency has no legal status in Pakistan: Written verdict of Peshawar High Court
Justice Kamran Hayat Miankhel issued a verdict on a petition filed against illegal trading of cryptocurrency and digital forex.
Peshawar (Web News)
The Peshawar High Court has dismissed a petition filed against the illegal trading of cryptocurrency and digital forex, stating in its verdict that cryptocurrency has no legal status in Pakistan. According to media reports, Justice Kamran Hayat Miankhel of the Peshawar High Court issued a written judgment after hearing the petition regarding illegal cryptocurrency and digital forex trading.
The verdict states that the government has introduced the Virtual Assets Ordinance 2025, under which a legal framework for licensing and regulation has been prepared. With the introduction of this regulatory mechanism, the matter has been addressed, and as a result, the petition has become ineffective. The court therefore dismissed the petition on the grounds of being infructuous.
Justice Kamran Hayat observed in the verdict that it cannot be denied that cryptocurrency has no legal status in Pakistan. The State Bank of Pakistan, through its letters and circulars, has only informed financial institutions and the public to exercise caution in dealing with such currencies.
The court further noted that the State Bank’s communications do not state that cryptocurrency trading is a crime or that any punishment has been prescribed for it. The regulation of crypto and digital forex trading is a matter of policy and legislation, which does not fall within the judicial domain. The authority to legislate and impose any ban rests with the executive and the legislature.
According to the petitioner, cryptocurrency trading poses risks of money laundering and terrorist financing. However, the government has introduced a regulatory framework under the Virtual Assets Ordinance 2025. The written judgment states that with the introduction of the Crypto and Digital Forex Policy 2025, these petitions have become ineffective at this stage.