Pakistan Court Ruling Shields P2P Crypto Transactions from Fraud Allegations

The Lahore High Court has made a significant ruling on cryptocurrency cases in Pakistan, stating that peer-to-peer transactions or receiving funds through bank accounts do not prove fraud or forgery.

The court was considering the bail of three individuals accused of involvement in cryptocurrency transactions. The Federal Investigation Agency (FIA) had registered a case against Hammad Ali, Asad Amjad, and Muhammad Athar under various sections of the Pakistan Penal Code and the Prevention of Electronic Crimes Act (PECA).

The court ruled that prosecutors must prove that the accused deceived the complainant into investing or created fake electronic records. The court also noted that buying or selling USDT does not violate the Foreign Exchange Regulation Act unless an unlawful foreign exchange transaction is proven.

The judgment added that virtual assets and cryptocurrencies are not recognized as legal tender in Pakistan, but this fact alone does not make them illegal or prohibited. The court found no evidence to support the accusations against the accused, who had cooperated with investigators and provided documentary evidence.