Zubair Qureshi
Islamabad
At a time when the world is earning billions of dollars through digital (crypto) currency by using ‘Bitcoins’ (BTC), a substitute to paper currency, Pakistan is still miles behind in adopting this digital mode of currency.
Social media celebrity, host, anchor and Founder of the Technology Movement Pakistan (TMP) Waqar Zaka is the lone voice championing the cause of cryptocurrency in Pakistan and has urged the government of the Pakistan Tehreek-e-Insaf (PTI) to legalize its use in the country.
What is making our rulers hesitant in adopting digital finance that is in practice worldwide.
“All over the world, even in our neighbouring India, cryptocurrency is being used as the fastest, easiest and the safest mode of exchange and countries, companies and even individuals are earning billions through it,” said Waqar.
However, he regretted that in Pakistan, the Federal Investigation Agency (FIA) Cyber Crime Wing is persecuting those who are trying to make living through cryptocurrency.
After getting disappointed with the government’s lackluster response over legalizing/framing laws on cryptocurrency, Zaka filed a petition in the Sindh High Court (SHC) requesting the court to direct the government to give a clear stance over digital currency.
In his petition, Waqar cited the State Bank of Pakistan (SBP), FIA Cyber Wing, and Securities & Exchange of Pakistan (SECP) and the Ministry of Finance as respondents. on the last date of hearing, Nov 5, the SBP counsel admitted before the court that the state bank had never banned cryptocurrency, however, he informed the court the laws regarding this new type of digital currency were not formed as yet.
In his remarks, Justice Muhammad Iqbal Kalhoro questioned about not using digital currency in the current era. The court also expressed surprise at the State Bank of Pakistan for not allowing cryptocurrency, remarking that the world had come a long way in modern technology and “we stand still in the stone age.”
While talking to Pakistan Observer Wqar Zaka said, regrettably, there was no law for this technology so there was no section that delegated powers State bank to ban crypto.
While quoting the court’s hearing, Waqar Zaka said the learned SHC judge had asked the SBP why at a time when the cryptocurrency was circulating all over the world and was only banned in Pakistan.
The SBP lawyer told the court that there was no ban on the cryptocurrency in Pakistan, but it had not been regularized.
It was also told during the hearing that the government was working on a framework for regulating cryptocurrencies like Bitcoin (BTC).
The court also sought details from the federal government, the State Bank, and the FIA by Dec 17.
Waqar Zaka said he was thankful to the court for taking up the matter since he was the lone petitioner seeking relief for using BTC in Pakistan. If we turn to this mode of technology, it will revolutionize our economy and Pakistan will get rid of all its loans and financial woes, said Waqar Zaka. He also regretted the FIA Cyber Wing’s action against those using this software/app on their computers.
“My point is who the complainant is in such matters; the SBP is a regulator and not a complainant. Secondly, FIIA can only take action against the person who violates any law. There are no suo motu powers,” emphasized Waqar.
Pakistan has been slow to adopt new frameworks for digital money and cryptocurrencies. Last year, the country was planning to introduce new digital currency regulations for electronic money institutions. In April 2019, the SBP announced plans to launch digital currency by 2025.
