Users trading cryptocurrency on Binance P2P in Pakistan have been reporting bank account freezes or blocks. This occurs mainly because the banking sector treats crypto-related transactions with caution.
What Causes This?
When you buy or sell crypto via Binance P2P and transfer funds through bank accounts, these transactions may be flagged as suspicious by banks. This can lead to account restrictions citing irregular or potentially fraudulent activity.
Reason Behind Bank Actions
Cryptocurrency remains largely unregulated in Pakistan. Although the State Bank of Pakistan has not banned crypto, it requires banks to monitor and report any crypto-related transactions. Banks tend to be cautious due to:
Multiple sources of funds from various accounts
High transaction volumes without clear commercial purpose
Risk of chargebacks and fraud allegations
These factors raise concerns under anti-money laundering (AML) and fraud prevention policies.
Is P2P Trading Illegal?
P2P trading is not illegal, but due to regulatory uncertainty, banks often respond conservatively by freezing accounts, holding funds for extended periods, or conducting investigations without defined timelines.
How to Minimize Risks?
Trade only with verified and KYC-compliant users
Prefer smaller transaction amounts
Maintain clear records of all trades including payment evidence
Consider using a dedicated business bank account for trading activities
Communicate your trading activities proactively with your bank’s relationship manager
What to Do if Your Account Is Blocked?
Contact your bank promptly and provide all necessary documentation
Submit proof of legitimate transactions and identity verification
Maintain consistent follow-up and professional communication
Request to escalate the issue to the bank’s AML or compliance department if needed
Conclusion
While Binance P2P trading offers opportunities, it carries inherent risks in Pakistan’s current regulatory environment. Exercising caution and maintaining transparency can help protect your assets and reduce disruptions.
If you have further questions or want to discuss your experience, feel free to reach out.
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