Senate Panel Criticizes Formation of Pakistan Crypto Council, Questions Legal Framework and Oversight

In a heated session of the Senate Standing Committee on Information Technology and Telecommunication, lawmakers voiced serious apprehensions about the recently formed Pakistan Crypto Council. The council, which has been announced as an advisory body under the Ministry of Finance, was met with skepticism from committee members who questioned its legal standing and the absence of parliamentary involvement.

Chaired by Senator Palwasha Khan, the session saw pointed inquiries and biting humor from the committee. One senator summed up the prevailing sentiment with a memorable analogy, saying, “It’s like having children before marriage,” drawing laughter but also underlining the gravity of the issue at hand. The remark highlighted the view that the government may be moving forward with crypto governance without laying down the necessary legal foundations first.

According to a briefing by the Secretary of the Ministry of Information Technology, the Pakistan Crypto Council was approved by the Prime Minister and will operate under the Finance Ministry’s guidance. However, this explanation failed to convince the senators, several of whom raised alarm over the council’s potential to facilitate financial fraud in the absence of proper oversight and legislative backing.

Senator Kamran Murtaza was among those who questioned whether the council had received approval from the Parliament. He emphasized that forming such a body without first establishing a clear legal framework could pose significant risks to citizens and pave the way for regulatory chaos. Other members echoed these sentiments, expressing concern about both public safety and institutional accountability.

Further confusion surrounded the Terms of Reference (TORs) for the council. The IT Secretary admitted that the Ministry of IT had not drafted the TORs, which were instead issued by the Ministry of Finance. This raised additional concerns over jurisdiction and transparency, with some senators fearing that the IT Ministry was being systematically sidelined. Senator Afnan Ullah noted a broader trend in which the Digital Authority and Telecom Authority had already been moved under the Cabinet Division, and now crypto-related matters were being handed over to the Finance Ministry.

The role of the State Bank of Pakistan (SBP) also came under scrutiny. Committee members questioned how currency regulation, traditionally under the SBP’s domain, would be handled if the Finance Ministry took the lead on crypto-related decisions. The IT Secretary clarified that the Ministry of IT is not positioned to act as a regulator for currency or social media, stating that those responsibilities now fall under the Ministry of Interior and the Federal Investigation Agency (FIA).

In light of these unresolved concerns, the Senate Committee decided to summon representatives from the Ministries of Law and Finance for the next meeting. They are expected to provide a detailed briefing on the formation, structure, and legal validity of the Pakistan Crypto Council. Until then, the council’s future remains uncertain as lawmakers demand greater accountability and legal clarity in managing the country’s emerging crypto ecosystem.

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