Crypto trading, peer-to-peer (P2P) transactions, and online remittances are becoming increasingly common in Pakistan. But many traders face a sudden shock when their bank accounts get blocked or suspended by the FIA or banks. Usually, they are told their account is part of a “chain dispute” or flagged because of crypto transactions through Binance, P2P, or other trading apps.
The issue of crypto bank accounts blocking in Pakistan is increasing day-by-day. If you are a crypto trader in Pakistan and your account has been blocked, this guide explains:
- Why banks freeze crypto traders’ accounts
- What FIA can and cannot legally do
- Your rights under Pakistani law
- How to safely restore your suspended account
- How to protect yourself from blackmail
Why Crypto Bank Accounts Blocking in Pakistan Happens?
Crypto traders are more vulnerable to FIA actions because of:
- P2P USDT/Bitcoin transactions flagged as suspicious
- International remittances linked to Binance or other crypto wallets
- Large unexplained deposits or withdrawals that banks label as “fraudulent”
- Misunderstanding of crypto: banks sometimes assume all crypto is illegal, even though it is only unregulated, PPC trying to regulate it in Pakistan soon.
This creates a grey area, which some FIA officers misuse to pressure or harass traders.
The Myth of “Chain Dispute” and Crypto Transactions
Many traders are told their account is part of a “chain dispute” — meaning money linked to a fraudster has passed through their account.
But legally, you are only accountable if you are directly involved in the fraud.
If you simply received USDT payments from a buyer/seller in good faith, that alone cannot justify a permanent block.
Legal Fact: Without Court Permission, FIA cannot block an Account
Even if your transactions involve USDT, Bitcoin, or Binance P2P, FIA officers cannot suspend your account without a court order.
- If they do so directly through email, it is a misuse of authority.
- If they ask you for “recovery payments” or money to restore your account, it amounts to blackmail or bribery.
What Crypto Traders Should Do If Their Account Gets Blocked
- Contact Your Bank Immediately
- Ask for the official reason.
- Request a copy of the email/complaint related to crypto transactions.
- Collect Key Details
- FIA officer Name who raised the complaint against you.
- Inquiry number and region (Karachi, Lahore, Islamabad, etc.)
- A copy of the complaint (with name, CNIC, and address of the complainant)
- Use the Right to Information Act 2017
You have the right to demand:
- The official FIA email that flagged your crypto transaction
- Certified court order (if any) behind the suspension
- Inquiry report and evidence
- Do Not Rush to FIA Without Proof
Many traders panic and visit FIA directly. This can lead to harassment. First, prepare your documents.
- File a Complaint Against Misuse of Power
If no court order exists, or an officer demands money, complain directly to the DG FIA for misconduct.
Crypto in Pakistan: Legal but Misunderstood
- Many officers misuse this grey area to label all transactions as “illegal.”
- Only if your name is in an FIR and you are directly accused of fraud can FIA demand recovery.
- P2P and Binance trading are not crimes in themselves.
Pakistan is not officially banned from crypto
Remember that critical thinking paired with good risk management will always outshine any expert signal.
Key Takeaways for Crypto Traders
- FIA cannot freeze your crypto-related bank account without a court order.
- Always ask for the complaint copy, court order, and officer details.
- Information Act 2017 to demand transparency, use that right.
- Never pay bribes — it encourages blackmail.
- Protect yourself by keeping transaction records for all your trades.
Conclusion
The rise of Crypto Bank Accounts Blocking in Pakistan has created serious challenges for freelancers, traders, and investors who rely on digital assets. While FIA has the authority to investigate suspicious transactions, it cannot freeze accounts without due legal process. Knowing your rights and taking the correct legal steps can protect you from unnecessary losses. By staying informed and cautious, crypto users can trade confidently while safeguarding their financial freedom.
Reference
The information in this article is based on insights shared by Adv. Raja Naveed Azam – Service Laws Consultant. Advocate of the Supreme Court of Pakistan
📲 WhatsApp: +92 326 5984145
Disclaimer
This article is just for educational purposes only, and it does not constitute legal advice. Laws and enforcement practices may change in Pakistan over time. For personalized legal help regarding crypto-related account blocking, always consult a licensed advocate.
Summary
Crypto traders in Pakistan are increasingly facing sudden Crypto Bank Accounts Blocking in Pakistan, often linked to FIA investigations or complaints from neighboring banks. Many freelancers and P2P traders on platforms like Binance and Bybit report their accounts being suspended without prior notice, leaving them vulnerable to financial losses.
However, it’s important to know that FIA officers cannot legally freeze or close a bank account without proper court authorization. By demanding official records, complaint references, and written notices under the Right to Information Act 2017, traders can protect themselves from harassment and misuse of authority. This guide, based on expert insights from Adv. Raja Naveed Azam (Service Laws Consultant), aims to help the crypto community understand their rights and navigate FIA-related account issues with confidence.
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