Pakistan is soon going to be added to the list of countries with a clear regulatory framework for crypto assets. In a recent development in this South Asian country, the highest court of Pakistan has instructed the government to develop rules and regulations about crypto transactions in the country. News of this decision from the High Court of Sindh (SHC) reached international media via Pakistan’s English daily, The Express Tribune. The court gave this verdict in connection with a petition that challenged the ban of crypto in Pakistan, effective since 2018.
The High Court of Sindh asked Pakistan’s Securities and Exchange Commission to work in tandem with central bans and other authorities to come with new crypto regulations in three months. The Ministry of Information Technology will also play a key role in developing these regulations. SHC also added that a report on the same has to be produced in the court within the same time frame.
In earlier reports, the Securities and Exchange Commission of Pakistan was already considering crypto regulations by the end of 2020. These developments come at a time when Pakistan is under pressure from various financial task forces. Pakistan has a history of being home to multiple terrorist organizations. Authorities believe that having a stricter regulation on crypto will significantly hinder terrorist funding projects and other money laundering scams. Pakistan is one of the most promising countries in terms of development in the crypto sector. It is now worth waiting to see whether regulations have a good or bad effect on Pakistan’s crypto sector.