The Sindh High Court in Pakistan has urged the State Bank of Pakistan to lift the crypto ban around the country.
In the petition, the Head of the Bench, Justice Iqbal Kalhoro questioned the crypto ban and why the premier bank restricted people from using digital assets since 2018. In his argument, he said things like this would further pull Pakistan with keeping up with other countries in terms of technologies.
Furthermore, Kalhoro asked the State Bank of Pakistan to explain the major reasons why digital assets trades were not allowed in the country when the global world is embracing the assets.
In the Bank’s defence, their legal representative said that regulation is one major reason why digital assets have not been used all around the country.
Kalhoro questions the stand of the law as regards the crypto ban
In his reply to the State Banks stand on the crypto ban, Kalhoro, he questioned why the use of digital assets had not undergone review and regulations drafted out for a long time. “If the trade or use of digital assets is not against the law, then why are people not allowed to use them? The lawyer asked.
In his review, he said the bank should look to other countries and how they are regulating digital assets. If this is done, they would be able to draw out perfect regulations that would guide crypto trading and investments around the country.
Pakistan does not regard crypto as legal tender
The State Bank of Pakistan drafted out a memo that warned against the use of digital assets around the country in 2018. According to the memo, digital assets are not seen as a legal tender, and this same move started the rumours about the crypto ban in the country.
In 2019, the government made moves to regulate crypto after it announced that a licensing scheme would be introduced to check the activities of Electronic Money Institutions which would include crypto dealers across the country.