The High Courtroom of Sindh (SHC), the highest judicial body in Pakistan's Sindh Province, has asked the authorities to come upwardly with modalities for cryptocurrency regulation.

According to Pakistani English language daily The Express Tribune, the SHC gave the instruction while hearing a petition brought before the court challenging the legality of the country's 2022 crypto ban.

The SHC instructed regulators such as the Securities and Commutation Commission of Pakistan (SECP) and the primal depository financial institution to work with government agencies such as the Ministries of Data Technology and Constabulary to develop crypto regulations within three months.

As part of the proceedings, the SHC also requested that a written report on the steps taken to regulate cryptocurrencies be submitted in the same time period.

As previously reported by Cointelegraph, the SECP has been considering crypto regulations since Nov 2022.

Combating money laundering and terrorism financing is reportedly at the heart of authorities consultation surrounding cryptocurrencies especially amid pressure from the Financial Action Task Force.

The SHC's instruction on Wednesday puts Sindh as the latest province to demand some form of recognition for cryptocurrencies in Pakistan.

Back in Dec 2022, the Khyber Pakhtunkhwa assembly chosen on the federal government to legalize crypto. At the time, the lawmakers pointed to the broad-based nature of digital currency adoption as an indication that cryptocurrencies were poised to supervene upon fiat in the future.

Related: Pakistan's primal banking company is 'carefully studying' CBDCs, says governor

In March, Khyber Pakhtunkhwa, another of Pakistan's 4 provinces, announced plans to airplane pilot crypto mining farms in the region.

Meanwhile, the State Depository financial institution of Pakistan (SBP), like many other central banks beyond the world, is also studying central banking concern digital currencies.

In a separate crypto-related case before the Lahore Loftier Court involving stakeholders such as the SECP, the SBP and the federal authorities, the court asked for participants to nowadays legal points on the matter in subsequent proceedings.

Lahore is the uppercase of Punjab, another of Pakistan's four provinces.