1. Regulatory Compliance and Suspicious Activity: Financial institutions in Pakistan are mandated to comply with national and international regulations to prevent illicit activities such as money laundering and fraud. Accounts involved in large or unusual transactions, especially those linked to cryptocurrency trading, may be flagged for suspicious activity, leading to freezes as a precautionary measure.

  2. Third-Party Payments and Fraudulent Transfers: Transactions where the payer and the account holder differ, or where funds are traced back to illicit activities, can raise red flags. Such discrepancies can result in account freezes to facilitate further investigation.

  3. Bank Chain Dispute Scams: There have been reports of scams where, after a cryptocurrency transaction, the buyer falsely claims that they did not authorize the payment, leading to disputes and potential account freezes for the seller.

  4. To mitigate these risks, individuals engaging in P2P cryptocurrency transactions in Pakistan are advised to:

  5. Conduct Due Diligence: Ensure that trading partners are verified and reputable to minimize the risk of fraudulent transactions.

  6. Use Separate Accounts: Utilize separate bank accounts or electronic money institutions (EMIs) like Sadapay or Nayapay for cryptocurrency transactions to safeguard primary banking relationships.

  7. Stay Informed: Keep abreast of local regulations and banking policies related to cryptocurrency trading to ensure compliance and reduce the likelihood of account disruptions.

  8. By adhering to these precautions, individuals can navigate the P2P cryptocurrency landscape in Pakistan more securely and reduce the risk of account closures or freezes.