The court notes that there is no dispute: the cryptocurrency currently has no legal status in the country
A lawyer walks past the High Court building in Peshawar. PHOTO: AFP
The Peshawar High Court has declared ineffective a petition seeking to ban cryptocurrencies and digital currency trading in Pakistan.
The bench, comprising Justice Naeem Anwar and Justice Kamran Mian Khail, heard the petition filed by lawyer Huzaifa Ahmed, and the eight-page judgment written by Justice Kamran Hayat Mian Khail. The petitioner argued that online cryptocurrency and digital currency trading was taking place openly across the country, supported by social media campaigns and so-called training academies.
He urged authorities to curb these activities, citing risks such as terrorist financing and money laundering that could threaten public interest and national security. The petitioner said he had informed the Federal Investigation Agency (FIA), Securities and Exchange Commission of Pakistan (SECP) and the government, but claimed that no action was taken.
The petition called for formal regulation and monitoring of cryptocurrency trading accounts and urged the government to legislate laws to prevent money laundering and illegal online trading activities. He also sought to declare the State Bank of Pakistan’s notification in the matter null and void.
However, the court noted that there was no doubt that cryptocurrencies currently have no legal status in Pakistan. The existing circulars issued by the State Bank only warn financial institutions and the public to be careful, without criminalizing the trade or prescribing penalties.
The ruling emphasized that regulating financial activities and preventing the misuse of cryptocurrencies is a complex policy issue that requires expert deliberation. The court observed that while the petitioner sought a ban and legal action, such relief falls within the purview of the executive and the legislature, not the judiciary.
Since the government has already introduced the Virtual Assets Ordinance 2025, which provides a regulatory framework for licensing and monitoring, the High Court concluded that the petition had ceased to be effective.
