Summary
- The Federal Investigation Agency (FIA) of Pakistan has launched a specialized cryptocurrency investigation unit to address money laundering and terrorism financing associated with digital currencies.
- This unit is part of the FIA's newly established National Command and Control Centre and will focus on the illegal activities involving cryptocurrencies, while regulatory oversight will be managed by the Pakistan Virtual Assets Regulatory Authority (PVARA).
- This initiative is part of a broader national effort to integrate cryptocurrency into the economy, which has included removing a banking ban, planning for exchange licenses, and engaging with crypto ventures linked to Trump.
Pakistan has taken significant steps in establishing a unit dedicated to investigating crimes related to cryptocurrency, as part of its initiative to adopt digital assets.
The FIA has created a cryptocurrency investigation unit within its newly operational National Command and Control Centre (NC3), focusing on combatting money laundering and terrorism financing linked to virtual currencies, according to Dr. Muhammad Athar Waheed, the FIA's counter-terrorism chief.
In an interview with the local news outlet Dawn, Dr. Waheed stated that this unit will specifically target the illicit use of cryptocurrencies, while the regulatory functions will be handled by the newly formed Pakistan Virtual Assets Regulatory Authority (PVARA). He also encouraged two other agencies—the National Cyber Crime Investigation Agency and the Anti-Narcotics Force—to establish similar units to address the use of crypto in cybercrime and drug trafficking, mentioning that new regulations are being formulated to ensure timely investigations.
The NC3 consolidates the FIA's financial crime resources, including anti-money laundering and cryptocurrency investigation desks, an Interpol coordination hub, and units for open-source intelligence, cybersecurity, and dark web investigations.
Pakistan's Approach to Cryptocurrency
Ranked third in the Chainalysis 2025 Global Crypto Adoption Index, Pakistan is actively working to formalize its cryptocurrency sector. The government has lifted an eight-year ban on crypto banking, established PVARA, started issuing licenses for crypto exchanges, and is considering tokenizing government assets.
In its diplomatic efforts with the U.S., Pakistan has partnered with an affiliate of World Liberty Financial, a crypto venture associated with the Trump family, to investigate the use of its USD1 stablecoin for international transactions.
However, this progress encountered a setback in June when the prominent Jamia Darul Uloom Karachi seminary declared that cryptocurrencies do not qualify as "wealth" under Islamic law and are thus not a legitimate payment method. This fatwa raised concerns regarding the government's crypto initiatives. In response, PVARA chairman Bilal bin Saqib has urged the seminary to clarify the distinction between speculative tokens and asset-backed instruments, such as stablecoins and blockchain-registered sukuk, stating to Reuters that Pakistan could potentially become a leader in Shariah-compliant digital finance.
Currently, the establishment of the FIA's unit provides Pakistan with an enforcement mechanism to complement its regulatory goals, even as the religious legitimacy of cryptocurrencies remains a contentious issue among scholars in the country.