KARACHI: The Sindh High Court (SHC) on Monday directed the State Bank of Pakistan (SBP) deputy governor, federal finance secretary and Federal Investigation Agency (FIA) director cybercrime wing to appear in person in the case challenging the ban imposed by the central bank on the use of cryptocurrency.
The high court directed the finance secretary to explain the measures taken to legislate the use of cryptocurrency in the country.
Social media activist Waqar Zaka had challenged a circular reportedly issued by the SBP, in April 2018, barring the use of virtual currencies.
Zaka apprised, the two-judge bench headed by Justice Muhammad Karim Khan Agha, that many unregistered companies were dealing in cryptocurrency for several months.
He said while the Securities and Exchange Commission of Pakistan had regulated the digital currencies, the SBP had not lifted its ban, seriously affecting the livelihood of thousands of people who worked for the unregistered companies.
To a query of Justice Agha, counsel of the central bank said the ban had been imposed to curb misuse of the cryptocurrency.
Justice Agha remarked that instead of banning the digital currencies the authorities should have regulated it through legislation.
The court asked the respondents to file their detailed replies to the petition and directed the state counsel to file details of the steps taken by the FIA against the unregistered companies dealing in the virtual currencies. Further hearing in the matter has been deferred till October 19.
In December 2021, the SBP had apprised the high court that it had never declared the digital currency illegal.