Pakistan's FIA has set up a unit to investigate cryptocurrency crimes, targeting money laundering and terrorism financing.
In a significant move to combat financial crimes, Pakistan's Federal Investigation Agency (FIA) has established a dedicated unit to investigate cryptocurrency-related offenses. This new unit will specifically target issues such as money laundering and terrorism financing, as reported by Dawn.
The initiative is part of the broader framework within the newly formed National Command and Control Center (NC3), while the Pakistan Virtual Assets Regulatory Authority (PVARA) remains in charge of regulating the digital asset sector.
Clarifying Agency Roles
FIA's Anti-Terrorism Director, Muhammad Atar Wahid, emphasized that this unit will focus on the potential misuse of digital currencies for illegal activities. PVARA's mandate includes licensing market players, formulating regulations, and overseeing the industry.
As part of NC3, the unit will collaborate with various agencies focused on anti-money laundering and cryptocurrency investigations. The center will also incorporate cyber patrols, dark web investigations, and coordination with Interpol.
Wahid encouraged the National Cyber Crime Agency and the Anti-Narcotics Force to establish similar investigative units. He noted that regulations are being developed to create timelines for ongoing investigations.
Developing a Regulatory Framework
In April, the State Bank of Pakistan lifted a previous ban on cryptocurrency transactions by financial institutions, allowing banks to facilitate accounts for licensed Virtual Asset Service Providers (VASPs) sanctioned by PVARA.
Companies with a No Objection Certificate (NOC) can open limited accounts, while full operational capabilities will only be granted after final approval.
PVARA is currently processing NOC applications, although the complete licensing framework for VASPs is still in development.
Simultaneously, discussions are underway with religious authorities regarding the classification of digital assets. A ruling from the Jamia Darul Uloom Karachi seminary in June stated that cryptocurrencies do not qualify as property under Islamic law and thus cannot be utilized for payments.
PVARA's head, Bilal bin Saqib, has called for a differentiation between speculative tokens and more stable, asset-backed digital instruments, such as fully reserved stablecoins and tokenized gold.
Notably, in September 2025, PVARA invited major global cryptocurrency firms to engage with Pakistan's evolving digital economy.
