Binance has found itself in regulatory troubles time and again. From the United Kingdom to Singapore, many governments have been vocal in their criticism of Binance and its financial policies. In a series of new developments, the government of Pakistan has sent a legal notice to Binance in relation to a recent fraud. Pakistan is among the countries with the highest crypto adoption rates. Despite not having a complete legal framework for crypto transactions, the country has not imposed any restrictions on individual investors and cryptocurrency exchanges. As a result, millions of its citizens have invested in cryptocurrency in different capacities. The recent series of financial crimes saw many of these investors losing significant amounts of money. The scam involves sending misleading transaction requests to Binance users in Pakistan, wherein they wrongly send money to a third-party wallet.
The fraud’s magnitude is unforeseen in the economic landscape of Pakistan. According to sources, the total amount of money lost to this scam is nearly 100 billion Pakistani Rupees. After thousands of complaints poured in, the authorities in Pakistan began to take notice of the event. They also sent a legal notice to the local representative of Binance demanding a clarification. The authorities have also banned 11 mobile apps in connection to the fraud. Pakistan holds crypto assets worth approximately $20 billion. Regulators in the country feel that it is very important to protect investors from such scams to maintain a stable crypto ecosystem in the country.