The Pakistani government intends to outlaw cryptocurrency trading

The FIA (Federal Investigation Agency) of Pakistan has announced that they intend to obtain a court order from the PTA to block cryptocurrency trading websites.

According to reports, the government's move is part of its efforts to combat fraud and money laundering.

Dr. Sanaullah Abbasi, Director-General of the FIA, met with the Cyber Crime Circle Office of State Bank Pakistan to discuss current digital security issues and how they can collaborate more closely in the future.

According to the FIA chief, SBP officials presented a mechanism to regulate cryptocurrency platforms.

The SBP team informed the participants that new cryptocurrency regulations would be submitted soon in response to orders from the Sindh High Court.

Law experts labeled crypto as an insecure and fraudulent

Pakistan's FIA Views Cryptocurrencies as a Safe Way to Do Business. However, law experts have expressed concerns about cryptocurrencies, labeling them as an insecure and fraudulent way to do business.

"Crypto has given a new dimension to fraud," said Abbasi, who added that the company would also connect legal experts to assist with fraud issues arising from this technology.

The FIA's director-general has stated that while cryptocurrency is legal in many countries, it is banned or restricted in others for legitimate reasons.

When deciding whether to allow the use of crypto platforms, he observed that they were primarily concerned with fraud and money laundering.

Earlier this week, meetings raised the issue of a lack of crypto-related legislation.

Following their meeting on the subject, the Financial Action Task Force has yet to issue any regulations for Virtual Asset Service Providers (VASP).

Many questions remain unanswered due to the lack of a regulatory framework, including what steps VASP will have to take if caught doing something illegal or inappropriate, such as terrorism financing.

The FIA's Director-General, Abbasi, issued a statement condemning those involved in a scam in which people were duped. He revealed the collection of data on potential suspects in order to ensure that no more victims fall victim.

The Financial Action Task Force (FATF) is investigating a $100 million cryptocurrency scam after 11 popular bitcoin exchange apps were removed from their platforms, thereby defrauding Pakistani investors.

The FIA arrested "Dr. Zafar" five months ago for defrauding Pakistani citizens through cryptocurrency schemes.