FBR (Pakistan) against bitcoin traders

State Bank of Pakistan (SBP) does not recognize cryptocurrencies (like Bitcoin). These currencies are often traded as commodities as well.

So the intelligence department of the Federal Board of Revenue (FBR) is investigating cases where investors traded in digital currencies most probably to evade taxation & money laundering.

Tax evasion is a predicate offense under Anti-Money Laundering Act 2010. The government has appointed the Directorate General of I&I-IR (Intelligence & Investigation, Inland Revenue) as investigating & prosecuting agency in cases where tax-evaded money is laundered.

The trade of bitcoins in on the rise in Pakistan. It is mostly traded against the cash in the country.

The current price of bitcoin is around PKR: 454,749.

Bitcoin is sometimes used as a tool for money laundering due to the decentralization of p2p (peer-to-peer) online transaction & their anonymity. No laws currently regulate the trade of it though.

An inquiry (by tax officials) showed that major traders of bitcoins are employed in multi-national telecom companies in Islamabad (Capital of Pakistan). They also have bank accounts abroad. & they're not reporting their business activities to the tax authorities, due to which the raise of suspicion grew of money laundering.

So, There will be in-depth investigations of these transactions & companies to show whether their income is reported properly under the taxation laws.