Money laundering using digital currencies is now being investigated by the top notch of FBR’s (Federal Board of Revenue) intelligence department. Investors use virtual currency to avoid paying taxes or do money laundering. They are now under investigation.
Crypto currencies like bitcoin are not recognized by the State Bank of Pakistan. These currencies are being traded as merchandise.
As per a tax officer people use crypto currencies for not paying taxes and performing money laundering
There is an anti-money laundering cell which has started its investigation on Wednesday.
According to the Anti-Money Laundering Act 2010 dodging payment of taxes is an established offense. Directorate General of I&I-IR has been appointed by the government to handle such cases where people don’t pay tax using digital currencies.
The trading of bitcoin is increasing in Pakistan, as the senior tax official further informed. He said that people are using bitcoin to trade against cash in Pakistan. Moreover, as per a report during December 2016 bitcoin trading in Pakistan rose to 400%.
The issue is that there is no law or regulation for trading through bitcoin. The secrecy and anonymity maintained in online trading has created room for money laundering and such illegal acts.
It was found out during the investigation that majority of traders of bitcoin represent a private telecom company based in Islamabad. Moreover the company did not display their official activities to the tax authorities which further made the situation look suspicious.
We saw that bitcoin and other virtual currencies are also used in cyber-attacks. It is being talked about that another massive cyber-attack is underway which would use bitcoin to transfer money to the hacker and the victims of the attack won’t even be aware that their laptop or PC is being used for illegal transactions. So here we come to the fact that these virtual currencies may create a more technological society but at what cost?