LAHORE: The Lahore High Court has directed a federal law officer to apprise it whether the State Bank of Pakistan (SBP) has laid down any law, rules, regulations for regulating cryptocurrency in the country and what is the legal status of the digital currency.

The court also asked an additional attorney general to tell whether the Federal Investigation Agency (FIA) has taken any action in terms of section 14 of the Prevention of Electronic Crimes Act, 2016 against the persons dealing with crypto miners and traders and whether the FIA has the jurisdiction to investigate such matters and what action or step has been taken under the schedule offence of FIA falling in its jurisdiction.

The law officer has also been instructed to apprise whether the Foreign Exchange Regulation Act, 1947 restricts citizens from importing or exporting any currency in terms of a notification issued by the FIA and whether the SBP has made any law for regulating the cryptocurrency.

Justice Jawad Hassan has posed these queries to the government admitting a writ petition challenging the jurisdiction of a special court for banking offences to hear a post-arrest bail petition by a suspect arrested by the FIA.

The FIA lodged an FIR against the suspect, Dr Muhammad Zafar, on the allegations of defrauding public at large in the name of investment in cryptocurrency to the tune of over Rs260 million.

On behalf of the petitioner, Advocate Javid Kasuri argued that the banking court had no jurisdiction to deal with the matter.

He explained that the special courts were established with the mandate to proceed with the trial of scheduled offences as per section 4 of Banks (Special Courts) Ordinance, 1984.

The counsel contended that the core point involved in the case related to issuance of cryptocurrency by the suspect who was neither a bank nor authorized by the SBP or any bank, therefore, the judge of special court had no authority to deal with the matter.

Justice Hassan admitted the petition for regular hearing observing that important points have been raised which need consideration of the court to safeguard the public interest regarding dealing with savings investment in cryptocurrency not supported by law/rules/regulations.

The judge also suspended the impugned proceedings pending before the special court till final decision of the petition.

The government law officers sought time to seek instructions from the relevant departments and the judge adjourned the hearing till Oct 20.

The judge appointed Barrister Nudra Abdul Majeed as amicus curiae to do a deep research work relating to the controversy in hand and also go through the jurisprudence developed by the superior courts of the country in this regard.

POSTINGS: The Lahore High Court on Friday issued transfer and posting orders of 176 additional district and sessions judges in Punjab.

The judicial officers have been directed to assume their new place of posting on or before Oct 12.

A notification issued by the LHC registrar says all cases, including part- heard being heard/tried in the courts of the officers transferred without substitute shall evenly be distributed among the judges posted and working there by the district and sessions judges concerned.

Published in Dawn, October 9th, 2021