The court notes that there is no dispute that cryptocurrency currently has no legal status in the country
A lawyer walks past in front of the Peshawar High Court building. PHOTO: AFP
The Peshawar High Court has declared ineffective a petition seeking a ban on cryptocurrency and digital currency trading in Pakistan.
The bench, comprising Justice Naeem Anwar and Justice Kamran Mian Khail, heard the petition filed by advocate Huzaifa Ahmed, with the eight-page judgment authored by Justice Kamran Hayat Mian Khail. The petitioner alleged that online cryptocurrency and digital currency trading was openly taking place across the country, supported by social media campaigns and so-called training academies.
He urged authorities to curb these activities, citing risks such as terrorist financing and money laundering that could threaten public interest and national security. The petitioner said he had informed the Federal Investigation Agency (FIA), the Securities and Exchange Commission of Pakistan (SECP) and the government, but claimed that no action was taken.
The petition called for formal regulation and monitoring of cryptocurrency business accounts and urged the government to enact laws to prevent money laundering and illegal online trading activities. It also sought a declaration that the State Bank of Pakistan’s notification in the matter should be declared invalid.
However, the court noted that there was no dispute that cryptocurrency currently has no legal status in Pakistan. Existing circulars issued by the State Bank only warn financial institutions and the public to exercise caution without criminalizing the trade or prescribing penalties.
The judgment emphasized that regulating financial activities and preventing misuse of cryptocurrency is a complex policy issue that requires expert advice. The court noted that while the petitioner sought an injunction and prosecution, such relief falls within the domain of the executive and legislative branches, not the judiciary.
As the government has already introduced the Virtual Assets Ordinance 2025, which provides a legal framework for licensing and monitoring, the High Court concluded that the petition had become ineffective.
