The court notes that there is no dispute. Cryptocurrency currently has no legal status in the country
A lawyer walks past the Peshawar High Court building. PHOTO: AFP
The Peshawar High Court has declared ineffective a petition seeking to ban cryptocurrency and digital forex trading in Pakistan.
The bench, comprising Justices Naeem Anwar and Kamran Mian Khail, heard the petition filed by lawyer Huzaifa Ahmed, with the eight-page judgment written by Justice Kamran Hayat Mian Khail. The petitioner argued that online trading of cryptocurrencies and digital currencies was taking place openly across the country, supported by social media campaigns and so-called training academies.
He urged authorities to curb such 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), Securities and Exchange Commission of Pakistan (SECP) and the government, but claimed no action was taken.
The petition called for formal regulation and monitoring of cryptocurrency trading accounts and urged the government to legislate to prevent money laundering and illegal e-commerce activities. He also demanded that the notification of the State Bank of Pakistan in this regard be declared null and void.
However, the court noted that there was no dispute that the 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 highlights that regulating financial activities and preventing the misuse of cryptocurrencies is a complex policy issue requiring expert deliberation. The court observed that although the petitioner had sought interdict and legal action, such relief was within the domain of the executive and legislature, and not the judiciary.
Given that the government has already introduced the Virtual Assets Ordinance 2025, which provides a regulatory framework for licensing and oversight, the High Court concluded that the petition had become ineffective.
