Pakistan’s High Court has ordered the government to regulate cryptocurrency within three months

The SHC requested a report on discussions around cryptocurrency regulation during the same time period. The High Court of Sindh (SHC), Pakistan’s highest judicial authority, has directed the government to develop regulations regarding cryptocurrencies.

According to the Pakistani English newspaper The Express Tribune, the SHC issued the order during a hearing on the constitutionality of the country’s 2018 cryptocurrency prohibition.

The SHC directed authorities such as the Securities and Exchange Commission of Pakistan (SECP) and the central bank to collaborate within three months with government departments such as the Ministries of Information Technology and Law to create crypto laws. The SHC also asked, as part of the proceedings, that a report on the measures taken to regulate cryptocurrencies be provided within the same time frame.

As Cointelegraph previously reported, the SECP has been examining cryptocurrency legislation since November 2020.

Combating money laundering and terrorist funding is said to be at the forefront of government consultations on cryptocurrencies, particularly in light of Financial Action Task Force demands. Sindh is the latest province to seek some kind of recognition for cryptocurrencies in Pakistan, after the SHC’s order on Wednesday.

In December 2020, the legislature of Khyber Pakhtunkhwa urged the federal government to legalize cryptocurrency. At the time, legislators cited the widespread use of digital currencies as evidence that cryptocurrencies were on track to eventually replace fiat.

In March, another of Pakistan’s four provinces, Khyber Pakhtunkhwa, revealed intentions to test crypto mining farms in the area. Meanwhile, the State Bank of Pakistan (SBP), like a number of other central banks worldwide, is doing research on central bank digital currencies. In a second cryptocurrency-related lawsuit before the Lahore High Judge, the court invited parties like the SECP, the SBP, and the federal government to submit legal arguments in future hearings. Punjab, another of Pakistan’s four provinces, has its capital in Lahore.

Also Read: PIMCO, A $2.2 Trillion Fund Manager, Intends To Increase Its Cryptocurrency Holdings.