Pakistan to block cryptocurrency trading websites

Pakistan’s Federal Investigation Agency (FIA) will block websites dealing in cryptocurrency after a complete ban on crypto was recommended following its meeting with the State Bank of Pakistan (SBP).

The SBP officials, which gave a presentation in the meeting about a regulating mechanism, noted that the central bank recently submitted recommendations under the direction of the Sindh High Court on the legal framework for cryptocurrencies in Pakistan.

SBP has recommended a complete ban on cryptocurrency.

After the meeting, FIA Director-General Dr. Sanaullah Abbasi said his agency will approach the Pakistan Telecommunication Authority (PTA) to block crypto websites to prevent fraud and money laundering.

Abbasi, while emphasizing that FIA is mainly concerned about fraud and money laundering, opined that crypto has given a new dimension to fraud.

The meeting highlighted that Pakistan has “no regulatory framework for virtual asset service providers to comply with the Financial Action Task Force requirements.

The FIA recently initiated a probe into a massive financial scam that allegedly defrauded Pakistani investors of over $100 million after 11 apps linked to cryptocurrency exchange Binance stopped working.