Pakistani authorities have dismantled a $60 million international crypto-forex scam, arresting 34 people in a coordinated crackdown on unregulated trading schemes, just as the country moves to formalise its digital asset market and open it to licensed global players.
The operation, led by the National Cyber Crime Investigation Agency (NCCIA), targeted a network accused of running fake crypto and foreign exchange investment platforms that allegedly defrauded victims both domestically and abroad.
According to investigators, the group promoted fraudulent trading schemes through social media, luring users with promises of high returns. Victims were initially shown fabricated profits to build confidence, before being asked to pay additional fees under various pretexts.
Once larger sums were committed, accounts were blocked and funds siphoned off. Proceeds were routed through local bank accounts, converted into cryptocurrency and moved across borders.
A Crackdown with Market Implications
While the arrests mark a significant law-enforcement action, officials have framed the case as part of a broader effort to eliminate the type of unregulated, cross-border financial activity that has flourished in Pakistan’s long-standing regulatory grey area.
The bust comes as Islamabad rolls out a new licensing regime for virtual assets under a dedicated regulator, the Pakistan Virtual Assets Regulatory Authority (PVARA). The authority is tasked with bringing crypto activity under formal supervision, with a focus on licensing, anti-money-laundering controls and consumer protection.
PVARA has already issued No Objection Certificates (NOCs) to Binance and HTX. While the approvals stop short of full operating licences, they allow the exchanges to register with local AML systems, establish subsidiaries and prepare formal licence applications.
Finance Minister Muhammad Aurangzeb described the new framework as evidence of Pakistan’s commitment to “responsible innovation and financial discipline”.
Carrot and Stick for the Crypto Market
Taken together, the enforcement action and the regulatory rollout point to a clear “carrot and stick” strategy. Authorities are moving aggressively to shut down illicit operators while simultaneously creating a legal pathway for large, compliant firms to enter one of the world’s most active crypto markets.
Pakistan ranks among the top countries globally by retail crypto usage, a status that has historically attracted both legitimate platforms and fraudulent schemes operating outside any regulatory oversight.
The latest bust highlights the risks authorities now say they intend to eliminate as part of the market’s transition toward formal regulation.
The message to the industry is increasingly explicit.
As Pakistan builds its regulatory infrastructure, unlicensed schemes face mounting pressure, while global players willing to operate under local rules are being welcomed. For brokers, exchanges and service providers eyeing the market, the direction is clear: future growth will depend not just on demand, but on compliance.
Pakistani authorities have dismantled a $60 million international crypto-forex scam, arresting 34 people in a coordinated crackdown on unregulated trading schemes, just as the country moves to formalise its digital asset market and open it to licensed global players.
The operation, led by the National Cyber Crime Investigation Agency (NCCIA), targeted a network accused of running fake crypto and foreign exchange investment platforms that allegedly defrauded victims both domestically and abroad.
According to investigators, the group promoted fraudulent trading schemes through social media, luring users with promises of high returns. Victims were initially shown fabricated profits to build confidence, before being asked to pay additional fees under various pretexts.
Once larger sums were committed, accounts were blocked and funds siphoned off. Proceeds were routed through local bank accounts, converted into cryptocurrency and moved across borders.
A Crackdown with Market Implications
While the arrests mark a significant law-enforcement action, officials have framed the case as part of a broader effort to eliminate the type of unregulated, cross-border financial activity that has flourished in Pakistan’s long-standing regulatory grey area.
The bust comes as Islamabad rolls out a new licensing regime for virtual assets under a dedicated regulator, the Pakistan Virtual Assets Regulatory Authority (PVARA). The authority is tasked with bringing crypto activity under formal supervision, with a focus on licensing, anti-money-laundering controls and consumer protection.
PVARA has already issued No Objection Certificates (NOCs) to Binance and HTX. While the approvals stop short of full operating licences, they allow the exchanges to register with local AML systems, establish subsidiaries and prepare formal licence applications.
Finance Minister Muhammad Aurangzeb described the new framework as evidence of Pakistan’s commitment to “responsible innovation and financial discipline”.
Carrot and Stick for the Crypto Market
Taken together, the enforcement action and the regulatory rollout point to a clear “carrot and stick” strategy. Authorities are moving aggressively to shut down illicit operators while simultaneously creating a legal pathway for large, compliant firms to enter one of the world’s most active crypto markets.
Pakistan ranks among the top countries globally by retail crypto usage, a status that has historically attracted both legitimate platforms and fraudulent schemes operating outside any regulatory oversight.
The latest bust highlights the risks authorities now say they intend to eliminate as part of the market’s transition toward formal regulation.
The message to the industry is increasingly explicit.
As Pakistan builds its regulatory infrastructure, unlicensed schemes face mounting pressure, while global players willing to operate under local rules are being welcomed. For brokers, exchanges and service providers eyeing the market, the direction is clear: future growth will depend not just on demand, but on compliance.
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