Pakistan High Court Clears Cryptocurrency Transactions

Lahore High Court (LHC) has clarified that peer-to-peer (P2P) cryptocurrency transactions and receiving related payments through a bank account do not amount to fraud or an offence under Pakistan's electronic crime laws.

The ruling came in a detailed 15-page judgment authored by Justice Tariq Saleem Sheikh, who upheld the pre-arrest bail of three individuals booked by the Federal Investigation Agency (FIA) in connection with a cryptocurrency trading case.

The complainant had transferred nearly Rs686 million while purchasing around 270,000 USDT (Tether) after being persuaded by an acquaintance to invest in cryptocurrency. The complainant later alleged that his cryptocurrency account was frozen, causing him financial losses. Investigators claimed that the accused had received the transferred funds through their bank accounts.

The LHC observed that merely transferring virtual assets or receiving money through a bank account does not automatically establish criminal liability. The court ruled that such actions alone are insufficient to prove offences including fraud, forgery, or violations of the Prevention of Electronic Crimes Act (PECA).