The State Bank has not outlawed digital currency in Pakistan despite claims to the contrary, according to a lawyer for the country’s central bank.
In a statement to the Sindh High Court, the lawyer said the bank had not banned digital currency or digital currency-related businesses as reported, but had instead issued guidance warning against the use of digital currency.
The comments were made in a case first brought back in January, filed in response to concerns that law enforcement agencies were acting beyond their powers in prosecuting individuals for engaging in digital currency transactions.
The lead petitioner in the case, TV presenter and social worker Waqar Zaka, said the digital currency ban had been misreported in local press, leading to enforcement action against individuals with digital currency holdings—despite no law passing parliament giving powers to that effect.
While the central bank said they could not guarantee any investment in digital currency, it could not stop individuals from starting new businesses.