Amid the rising number of crypto cases fraud and criminal activities linked to digital currencies in the country, the government has begun reviewing proposals to introduce regulations for cryptocurrency and blockchain technology, local media has reported.
With the possibility of a legal framework being established soon, officials revealed that the government is not only considering regulations for crypto cases fraud and blockchain but is also evaluating the introduction of a Pakistani digital currency to bolster the rupee.
A key proposal under review is the introduction of a state-backed digital currency that would be legally recognized under the State Bank of Pakistan (SBP) laws, ensuring stability in the country’s financial ecosystem.
The development follows Pakistan Muslim League-Nawaz (PML-N) Senator Dr. Afnan Ullah Khan’s introduction of the Virtual Assets Bill 2025, a legislative initiative aimed at setting up a regulatory framework for cryptocurrencies, blockchain technologies, and virtual assets in Pakistan.
This bill intends to legally formalize the virtual assets sector while addressing critical concerns such as security, fraud prevention, and financial stability. Given the increasing adoption of digital assets worldwide, the move is seen as a step toward aligning Pakistan with global regulatory standards to safeguard investors and consumers.
Pakistan’s economic hub, Karachi, recently witnessed a shocking crypto crime where police personnel allegedly colluded with private individuals in a short-term kidnapping-for-ransom scheme.
The victim, Arsalam Malik, a businessman involved in cryptocurrency, was abducted, and a staggering 340,000 USDT was transferred from his account to the perpetrators.
The case sparked widespread alarm, particularly within Pakistan’s growing crypto community, which already operates in a legal grey area. The lack of a clear government stance on cryptocurrency legality has fueled investor anxiety while creating loopholes for fraudulent activities to flourish.
With increasing crypto cases fraud, many victims hesitate to file complaints due to trust issues and legal uncertainties. The latest kidnapping case has further intensified concerns, as crypto traders now face not only financial scams but also physical threats targeting their digital assets.
The absence of proper regulations has allowed fraudulent schemes, money laundering, and cybercrimes to thrive, with criminal elements within institutions exploiting the situation. While crypto-related fraud cases have been reported before, this incident marks the first known case where law enforcement personnel allegedly participated in a digital asset heist.
Experts stress that legalizing and regulating cryptocurrency could be a game-changer for Pakistan. A structured legal framework would not only enhance traceability but also curb crypto fraud and illicit activities.
Since the crypto boom in Pakistan in 2015-16, nearly two dozen criminal cases related to digital currencies have been registered, with almost half of them lodged with the FIA Cybercrime Circle in Karachi alone.
As crypto cases fraud continue to rise, industry leaders urge the government to adopt a comprehensive legal structure to safeguard investors, deter criminals, and position Pakistan within the global digital finance ecosystem.