Categories: World

Pakistan cracks down on cryptocurrency dealers amid money laundering surge

<p>
Pakistan is coming down with a heavy hand on cryptocurrency dealers and has asked the Pakistan Telecommunication Authority (PTA) to shut down 1,600 websites over money laundering issues.</p>
<p>
The country's Federal Investigation Agency (FIA) told the PTA that cryptocurrency is a tool of money laundering. Pakistani newspaper <a href="https://tribune.com.pk/story/2339341/cryptocurrency-dealers-to-be-in-hot-water-soon"><em>The Express Tribune </em>says that </a>arrests of cryptocurrency dealers are expected across the country as the FIA has asked the PTA to identify the people behind the websites.<br />
<br />
FIA's cybercrime wing has already launched a joint operation with the PTA against cryptocurrency operators in the country. It began its investigations in December last year after people complained of being <a href="https://www.indianarrative.com/world-news/crypto-scam-pakistanis-lose-millions-to-massive-fraud-141542.html">cheated by cryptocurrency apps</a>.<br />
<br />
In the first week of January 2022, the agency even sent a notice to Binance–the world's largest cryptocurrency exchange, asking the organisation about 11 mobile apps that had defrauded Pakistanis of nearly $100 million in the digital currency fraud.<br />
<br />
Each app had thousands of customers with investment ranging between $100 to $80,000.<br />
<br />
Imran Riaz, Head of Cyber Crime Zone, of the Karachi-based FIA tweeted: "The Federal Investigation Agency Cyber Crime Sindh’s action on 11 online investment apps integrated with Binance. The apps defrauded Pakistanis with about 100 million $. A letter has been sent to Binance as well as notice to GM Binance Pakistan".<br />
<br />
Pakistan had declared the cryptocurrency illegal in 2018. However, that did not prevent Pakistanis from pumping money in digital currencies. The Pakistan Chamber of Commerce and Industry recently said that <a href="https://www.thenews.com.pk/print/923043-forex-reserves-fall-to-24-02bln">Pakistanis hold nearly $20 billion</a> in investments in digital currencies, which is slightly less than the country's foreign exchange reserves at approximately $24 billion.</p>
<p>
Even as the FIA takes action, in a complete reversal, the government is thinking of regularising cryptocurrency and promoting blockchain technology. </p>
<p>
At a block-chain technology meet, Science and Technology Minister Shibli Faraz told journalists: "The government wants to regularise cryptocurrency and the State Bank, SECP [Securities and Exchange Commission of Pakistan] and Finance Division are working on it. We cannot stay out of the affairs of the region".<br />
<br />
The minister said that government’s control was necessary for their protection and transparency. He added that the science and technology ministry had launched blockchain technology pilot projects in collaboration with three universities.</p>

Rahul Kumar

Rahul Kumar writes on international issues and is a keen watcher of South Asia, environment, urban development and NGOs.

Recent Posts

“Hum ghar mein ghus kar maarenge aur bachne ka ek mauka tak nahi denge”: PM Modi

Prime Minister Narendra Modi on Tuesday reiterated India's firm stance on terrorism, emphasising that the…

3 hours ago

Women’s freedom movement gives call to end detention of Afghan refugees in Pakistan

The Women's Freedom Movement has called for an end to the detention of Afghan refugees…

4 hours ago

MoS Pabitra Margherita calls on President of Fiji Ratu Naiqama Tawakecolati Lalabalavu

Union Minister of State of External Affairs and Textiles, Pabitra Margherita called on the President…

5 hours ago

‘Bharat Mata ki Jai’ echoes at Adampur Air Base as PM Modi salutes courage of Air Warriors

Chants of Bharat Mata ki Jai and Vande Matram echoed at the Adampur Air base…

6 hours ago

Three LeT terrorists killed in South Kashmir’s Shopian, search operation still on

Three terrorists affiliated with the Lashkar-e-Taiba (LeT) were killed in the Shukroo forest area of…

6 hours ago

PM Modi visits Adampur Airbase, interacts with Air warriors, salutes their courage

Prime Minister Narendra Modi on Tuesday visited the Adampur Air Base in Jalandhar and interacted…

7 hours ago