By: Kamran Ali Shah
PESHAWAR: The Peshawar High Court (PHC) has made a ruling on a petition challenging the ban on cryptocurrency and digital forex trading. The court found that since the government has introduced the Virtual Assets Ordinance 2025, which provides a legal framework for licensing and regulation, the writ petition has become ineffective.
A two-judge bench, consisting of Justice Naeem Anwar and Justice Kamran Miankhel, heard the petition filed by Barrister Huzaifa Ahmed. The eight-page decision was written by Justice Kamran Hayat Miankhel.
In his petition, Barrister Huzaifa Ahmed argued that online cryptocurrency and digital forex trading activities are openly being conducted in the country, with numerous social media platforms and training academies emerging for this purpose. He asserted that there is an urgent need for legislation to regulate such activities due to concerns about terrorism financing and money laundering, which pose threats to public interest and national security. The petitioner also informed the Federal Investigation Agency (FIA), the Securities and Exchange Commission of Pakistan, and the government, but no action was taken.
The petitioner’s lawyer maintained that cryptocurrency-related business accounts should be regularly regulated and monitored. The writ also requested that the government be ordered to enact legislation pertaining to cryptocurrency and forex trading to address issues related to money laundering and investment in illegal online activities. Additionally, the petition sought to have the notification issued by the State Bank of Pakistan declared null and void.
In its decision, the court noted that while there is no legal status for cryptocurrency in Pakistan, financial institutions and the public have been advised by the State Bank’s letters and circulars to exercise caution in engaging with such currencies. However, these communications do not classify cryptocurrency trading as a crime or impose any penalties.
The written decision stated that regulating financial affairs and preventing cryptocurrency trading is a complex policy matter that requires careful consideration and expert input. The petitioner has requested a ban on such trades and legal action against individuals involved, as well as legislation on the issue. However, the court ruled that these matters fall under the authority of the administration and the legislature, not the judiciary.
Ultimately, the court concluded that this is a matter of policy-making and legislation, which does not fall within its jurisdiction. With the government’s promulgation of the Virtual Assets Ordinance 2025 and the establishment of a formal regulatory framework for these activities, the writ petition has become ineffective at this stage.
