ISLAMABAD: The Federal Investigation Agency has decided to initiate a nationwide crackdown on cryptocurrency traders, and has written a letter to the Pakistan Telecommunication Authority (PTA) urging the shutdown of 1,600 websites.
The agency claimed in the letter that cryptocurrencies may be used to launder money.
The FIA is poised to undertake a major operation against cryptocurrency traders in the near future, with arrests expected all around the country.
The agency, according to insiders, has begun building a list of cryptocurrency operations.
The agency named 1,600 websites that dealt in cryptocurrencies in the letter.
Apart from closing down the websites, the FIA asked the PTA for help in prosecuting the people behind them.
According to the letter, millions of dollars have been looted from citizens as a result of digital currency fraud.
Since 2018, the State Bank of Pakistan has ruled cryptocurrencies to be illegal in Pakistan.
The FIA’s Cybercrime Wing has already initiated a coordinated operation against cryptocurrency operators with the PTA.
In a related development, the federal government has announced a plan to regulate bitcoin and blockchain technology.
“The government wants to regulate cryptocurrency, and the State Bank, the SECP [Securities and Exchange Commission of Pakistan], and the Finance Division are working on it,” Federal Science and Technology Minister Shibli Faraz said after speaking at a block-chain technology summit in the federal capital on Tuesday.
“We can’t stay out of the region’s affairs,” he continued.
The minister stated that misguided people were flocking to cryptocurrency without considering the risks, and that government oversight was required to ensure their safety and transparency.
Shibli had earlier told the summit that his ministry had taken significant steps to move toward the use of technology, including developing electronic voting equipment and formulating a science innovation programme.
He went on to say that roughly 200 countries had adopted blockchain technology into their institutions in some way.
Shibli went on to say that his ministry had started blockchain technology pilot projects in three of its universities.
“Blockchain degrees will be offered by all three universities.” Issues with the HEC [Higher Education Commission] regarding degree verification will also be settled.”
Masood Khan, Pakistan’s ambassador-designate to the United States, spoke at the event and stated blockchain was an emerging technology. He went on to say, “Blockchain has nothing to do with Bitcoin.”
“It [blockchain] will bring transparency and remove corruption.” Blockchain is critical in the fight against corruption and in healthcare.”
He also mentioned that Amazon, the American e-commerce behemoth, has registered in Pakistan.
“Pakistan is attempting to protect personal information. It has a favourable investment climate. From geopolitics to geoeconomics, the country has progressed.”
