FIA’s Cyber crime wing of Pakistan plans to request the Pakistan Telecommunication Authority (PTA) to block websites like Binance that facilitate cryptocurrency transactions. This measure aims to prevent fraud and potential money laundering. The Director General of the FIA announced this plan following discussions with State Bank officials.
Cryptocurrency has been deemed illegal in Pakistan for some time. This status stems from a State Bank circular, which the PTA refused to accept in 2022. The Sindh High Court has since directed the government to introduce legislation either allowing or banning crypto currencies.
Critics argue that blocking crypto apps primarily benefits corrupt elites and helps safeguard the dollar in the market, while disproportionately affecting the middle class. Wealthier individuals can easily bypass these restrictions by investing in crypto from abroad, such as in Dubai.
Recognizing the growing interest in crypto currencies, the government of Khyber Pakhtunkhwa (KP) has established Pakistan’s first-ever Crypto Advisory Committee.
Some see this crackdown as financial repression, claiming that it targets easier entities like Binance instead of addressing the real channels of black money. They advocate for increased access to decentralized sites and more frequent use of VPNs, suggesting that people should move away from the devaluing Pakistani rupee (PKR) in search of better financial opportunities.
Critics also highlight that many Pakistanis are currently earning income through bot trading, which brings revenue into the country. They argue that cutting off such income sources further marginalizes ordinary citizens. Additionally, there is significant frustration with the State Bank, with detractors questioning its effectiveness and purpose.
A growing sentiment among some Pakistanis is to boycott the traditional financial system by investing in Bitcoin, viewing it as a way to escape governmental control. They warn that without such actions, citizens may remain economically enslaved and continue to suffer under systemic issues.
