Sindh High Court Chief Justice Muhammad Junaid Ghaffar has emphasized that amendments in existing laws are essential for courts to effectively handle cases related to virtual assets and cryptocurrencies in Pakistan. Speaking at a conference on digital and virtual assets organized at the Sindh Judicial Academy, the chief justice highlighted the urgent need for legislative clarity in an area that is rapidly reshaping financial and legal systems worldwide.
Justice Ghaffar acknowledged that digital assets and cryptocurrencies are still relatively new concepts for many in Pakistan, yet the Federal Investigation Agency (FIA) has already registered multiple cases tied to online businesses and hidden transactions. He noted that courts often encounter cases involving concealed assets or funds transferred illegally, making it increasingly important for the judiciary to be equipped with specialized knowledge. He also stressed the need for additional training for judges to navigate the complexities of digital finance and blockchain-related disputes.
He pointed out that despite ongoing discussions and legislation around cryptocurrencies, the government itself remains cautious. The State Bank of Pakistan has maintained a ban on digital currencies due to associated risks, and the government has yet to lift these restrictions. According to Justice Ghaffar, Finance Minister statements suggest that only about 15 percent of the population in Pakistan currently engages with crypto exchanges. However, the possibility of Pakistan being pushed back onto the grey list over regulatory lapses in crypto activities remains a pressing concern, which explains the government’s cautious approach.
The chief justice added that meaningful progress in regulating virtual assets cannot take place until the State Bank makes a final decision regarding the existing ban. He further clarified that while courts are playing a supportive role, they are limited by the principle that they interpret laws rather than create them. Legislative amendments, therefore, must come first before the judiciary can effectively address the complexities of virtual asset disputes.
Justice Ghaffar also discussed challenges around the ordinance governing cryptocurrencies, noting that the role of courts and tribunals has not been clearly defined. He explained that under the current ordinance, authority may be delegated to any tribunal to hear crypto-related cases until a dedicated tribunal is established. This legal ambiguity, he said, underscores the need for clearer frameworks.
On judicial reforms, he mentioned that although the Sindh High Court faces legal hurdles in pursuing public-private partnerships, efforts are underway to digitize court records, signaling gradual progress toward modernization.
In conclusion, the Sindh chief justice reiterated that courts require substantial legal backing through amendments before they can deal with virtual asset cases effectively. He emphasized that while the judiciary stands ready to play its part, responsibility lies with lawmakers and regulators to create the necessary frameworks to ensure Pakistan can keep pace with the evolving digital financial landscape.
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