Is Trading Cryptocurrency Legal in Pakistan

In a separate case, the Sindh Supreme Court ordered the federal government to regulate cryptocurrencies within three months. The court instructed the government to form a committee led by the federal minister of finance to determine the legal status of cryptocurrencies. A man named Muhammad Asghar filed a complaint against Muhammad Zafar at the faisalabad Cyber Crime Circle. The plaintiff argued that the defendant had invited the general public via social media to invest in the fake digital currency “Bither Cash” and show it as a real cryptocurrency. The State Bank of Pakistan gave no reason for banning all digital currencies in 2018, except to note that they are not legal tender and are not issued or guaranteed by the Pakistani government. Bitcoin miners were arrested by law enforcement, but in January 2018, Carlos Vargas, the government`s cryptocurrency superintendent, said, “This is an activity that is now completely legal. We have had meetings with the Supreme Court to ensure that people who have been the victims of seizures and arrests in recent years are charged. [55] In 2018, FINMA said it would take a “balanced approach” to the cryptocurrency industry and “allow legitimate innovators to navigate the regulatory landscape.” As of June 2021, a record number of 100 exchange-traded products (ETPs) and crypto-structured products with a total value of CHF 4.6 billion had been offered on the SIX Swiss Exchange. [138] In early 2018, India`s central bank, the Reserve Bank of India (RBI), announced a ban on the sale or purchase of cryptocurrency for companies regulated by the RBI. [78] Financial institutions are not allowed to facilitate Bitcoin transactions.

[13] Regulators have warned the public that Bitcoin has no legal protection “because the currency is not issued by a monetary authority and therefore has no right to legal claims or a conversion guarantee.” [101] Zaka also played a role in the adoption by the government of her state – Khyber Pakhtunkhwa province – of a resolution calling on the national government to review its document explaining why the legalization of cryptocurrency in Pakistan would be beneficial to the country. The Autorité des marchés financiers (FMA) has warned investors that cryptocurrencies are risky and that the FMA does not monitor or regulate virtual currencies, including Bitcoin, or cryptocurrency trading platforms. [13]: 30-31 He claimed that there are many unregulated institutions in the country that illegally conduct cryptocurrency transactions, which can lead to a risk of money laundering, terrorist financing and other criminal activities. Owning and exchanging cryptocurrencies in Georgia is legal. Due to the lack of government regulation and cheap and available hydropower, Georgia is a crypto mining center. The publication also informed about another crypto-related case that had been heard before the Lahore High Court with the participation of legal representatives from several interested parties such as SECP, SBP, FIA and the federal government. The English-language daily revealed that the court had asked for the support of the institutions on the issue and asked them to set out relevant legal positions. On February 5, 2021, the Central Bank of Nigeria issued a circular informing Nigeria`s financial institutions that after its January 2017 circular, trading in cryptocurrency or facilitating its payment would remain prohibited and would result in a severe penalty. [18] During the hearing of a petition against the restriction of trade in virtual currencies, the SHC Departmental Bank, presided over by Judge Mohammad Karim Khan Agha, noted that cryptocurrency had become an accepted transaction method worldwide. .