I just read about various decisions made by State Bank of Pakistan pertaining to crypto and it turns out that SBP has indeed banned trading / investment of Cryptocurrencies , although it is also clear that they do not fully understand the concept and this ban would be short lived. but uptil now it is Banned
The ban on cryptocurrencies has been issued in light of the following risks:
High price volatility as investments tied to virtual currencies are highly unstable and are primarily based on speculations;
Furthermore, fraudsters have also started offering pyramid style investment schemes and coins, promising high returns (similar to Ponzi schemes) to the general public in Pakistan. SBP believes that this can cause significant losses to the general public.
Recent news of few people getting arrested who were dealing with Bitcoin were actually arrested because they were running a website offering courses of cryptocurrency at bit.college ,the website nor their business will registered thus they were arrested .