The Sindh Province’s highest judicial body, The High Court of Sindh (SHC) has issued an order for the government of Pakistan. In this order, it has been instructed that the government must work around a policy for the adoption of cryptocurrencies.
The government needs to do its research and come up with a plan to set up cryptocurrency regulation modalities. This information has been published by “The Express Tribune”, in the daily Pakistani English publications.
The court issued the order following the submission of an application that was filed to challenge the cryptocurrency ban that was imposed on cryptocurrencies in Pakistan back in 2018.
In the application, the legality of the cryptocurrency ban was challenged questioning why the ban was imposed in the first place. Therefore, the Sindh High Court has adopted an active approach towards the case and it is aiming to come to a conclusion at the earliest.
This is the reason why the SHC has issued instructions for the government agencies as well as the Securities and Exchange Commission of Pakistan (SECP) to work together. The SHC has instructed that the collaboration between the government agency and the regulator would be to come up with policies surrounding cryptocurrencies.
Now, the government as well as the regulatory authority would need to collaborate and come up with cryptocurrency regulations. This is to ensure that the cryptocurrencies are regulated in the country and the safety of the users can be ensured.
It is being expected that the government agency that may work on the crypto-regulatory framework would be the law enforcement and the information technology ministries. However, the regulator and the agencies would need to do it in a very short amount of time.
The SHC has announced that the government of Pakistan has three months’ time to come up with a regulatory framework. The SHC has been proactively looking after the progress and development of the regulatory framework.
Apart from issuing collaboration orders, the SHC has also demanded that a progress report must be submitted from time to time, showing progress on the matter. This way, the SHC will be able to ensure that work is actually being done on the crypto-regulatory policies’ development.
Even before the order issuance by the SHC, the SECP had already been looking into the cryptocurrency adoption matter. Some sources had claimed back in November of 2020 that the securities regulatory authority had been considering coming up with regulations surrounding cryptocurrencies.
Given the past couple of decades’ history of Pakistan, the regulators would need to be very strict and careful when making policies around counter-terrorist funding and anti-money laundering.
The country will also need to come up with strict and transparent personal identifiable information guidelines. This would help the country keep a close track of citizens in the country.