Pakistan’s premier investigation agency wants websites dealing in cryptocurrencies blocked

ISLAMABAD: The Federal Investigation Agency (FIA) has decided to approach the Pakistan Telecommunication Authority (PTA) to get websites dealing in cryptocurrencies blocked in the country, local media reported on Sunday.
The FIA said earlier this week thousands of Pakistanis had lost their life savings in a cryptocurrency scam amounting to about $100 million, adding that its officials were probing the case by reaching out to Binance which is the world’s largest digital currency exchange in terms of its daily trade volume.
FIA Director General Sanaullah Abbasi told Dawn newspaper his agency “will approach the Pakistan Telecommunication Authority for blocking websites dealing in cryptocurrencies to prevent fraud and possible money laundering.”
“Crypto has given a new dimension to fraud,” Abbasi added.
Pakistan’s central bank on Wednesday recommended banning digital currencies, arguing their use could facilitate capital flight from the country. The recommendation followed another by a committee formed by the Sindh High Court that also urged imposing a “complete ban” on cryptocurrencies.
The recommendations came while the court was dealing with a petition filed in 2019 which sought to overturn the central bank’s April 2018 notification advising banks and payment system operators against processing and investing in virtual currencies.
Officials believe the current ambiguity surrounding the legality of digital currency trade has made it easier for Pakistanis to fall prey to financial scams.
Investigators estimate some 37,000 people, mostly from middle-class households in Punjab’s Faisalabad district, had been defrauded after investing money in a cryptocurrency scheme that promised huge returns.

Pakistan’s premier investigation agency wants websites dealing in cryptocurrencies blocked