PHC declares cryptocurrency and digital FX prohibition petition ineffective.

The Peshawar High Court has found ineffectual a plea seeking to prohibit cryptocurrencies and digital FX transactions in Pakistan.
The panel, which included Justice Naeem Anwar and Justice Kamran Mian Khail, heard Barrister Huzaifa Ahmed’s appeal and issued an eight-page ruling penned by Justice Kamran Hayat Mian Khail. The petitioner claimed that online cryptocurrency and digital FX trading were openly taking place throughout the country, aided by social media marketing and so-called training institutes.

He asked authorities to put a stop to these operations, noting hazards such as terrorist funding and money laundering as potential threats to the public interest and national security. The petitioner stated that he alerted the FIA, the Securities and Exchange Commission (SECP), and the government, but no action was taken.

The petition requested that bitcoin company accounts be formally regulated and monitored, as well as that the government pass legislation to combat money laundering and unlawful internet trade. It further requested that the State Bank of Pakistan’s announcement regarding the case be deemed null and invalid.

The court did, however, state unequivocally that Bitcoin had no legal validity in Pakistan. Existing circulars published by the State Bank simply advise financial institutions and the general public to take prudence, without criminalizing or prescribing penalties.

The decision underlined that regulating financial transactions and avoiding bitcoin misuse is a complicated regulatory issue that needs expert consultation. The court noted that, while the petitioner requested a prohibition and legal action, such remedy is the purview of the government and legislature, not the courts.

The High Court ruled that the petition was no longer effective since the government had previously passed the Virtual Assets Ordinance 2025, which establishes a regulatory framework for licencing and monitoring.