Pakistan’s Federal Investigation Agency (FIA) has launched a dedicated unit to investigate cryptocurrency-linked crimes, aiming to strengthen the country’s ability to combat financial misconduct involving digital assets.
Specialized Crypto Crime Unit Unveiled
The new cryptocurrency investigation unit operates within the FIA’s National Command and Control Centre (NC3), according to FIA Counter-Terrorism Wing Director Dr Muhammad Athar Waheed. Its primary focus will be to track and address money laundering and terrorism financing carried out via virtual currencies.
Dr Waheed stated that, while the Pakistan Virtual Assets Regulatory Authority (PVARA) is responsible for overseeing digital asset regulation, the FIA unit specializes in enforcement and criminal investigation. He called on the National Cyber Crime Investigation Agency and the Anti-Narcotics Force to establish similar crypto-focused teams to curb the use of virtual assets in cybercrime and the drug trade. He also confirmed that rules are being drafted to ensure that crypto-related investigations are concluded within set timelines.
Pakistan’s newly formed National Command and Control Centre combines all financial-crime tools under one roof, including anti-money laundering, virtual currency investigation desks, Interpol collaboration, open-source intelligence, cyber patrolling, and dark web investigation units.
The NC3 platform consolidates the FIA’s investigative resources, allowing for greater coordination across various types of financial crime, from conventional money laundering to cyber-enabled offenses.
Mini dictionary: Pakistan Virtual Assets Regulatory Authority (PVARA) – PVARA is the state entity tasked with developing regulations and providing oversight for the country’s crypto and virtual asset sector.
Regulatory Approach and International Engagements
Pakistan has made several rapid moves to formalize its crypto sector. The government lifted an eight-year-old ban on crypto banking, established PVARA, started issuing licenses to digital asset exchanges, and initiated efforts to tokenize state-backed assets.
| Development | Previous Status | Current Status |
|---|---|---|
| Crypto banking ban | In effect since 2018 | Lifted in 2024 |
| Regulatory authority | No dedicated regulator | PVARA created |
| Licensing of exchanges | Not permitted | Licensing process launched |
The country’s diplomatic strategy has also integrated digital assets. Islamabad has entered talks with an affiliate of World Liberty Financial, a US-based crypto venture connected to the Trump family, to explore the use of its USD1 stablecoin for international payments.
Pakistan is currently ranked third in the Chainalysis 2025 Global Crypto Adoption Index, reflecting the country’s growing engagement with digital assets at a global scale.
Religious Debate and Market Uncertainty
Despite regulatory and enforcement momentum, digital assets face criticism from religious authorities. In June, Jamia Darul Uloom Karachi, an influential Islamic seminary, issued a fatwa categorizing cryptocurrency as invalid “wealth” under Sharia law and not a permissible payment method. This has cast uncertainty over Pakistan’s broader adoption plans.
Bilal bin Saqib, who chairs PVARA, has called for dialogue to distinguish between speculative cryptocurrencies and regulated, asset-backed products. He argued that Pakistan could become a leading center for Shariah-compliant digital finance if asset-backed stablecoins and blockchain-based sukuk are embraced alongside proper regulatory safeguards.
Uncertainty remains in the sector as religious scholars and regulators continue to debate the permissibility of crypto, leaving Pakistan’s official stance on digital assets under ongoing review.
With the enforcement arm now established, Pakistan’s government is moving forward on multiple fronts. However, the question of whether cryptocurrency aligns with religious principles remains unresolved and continues to influence the pace and direction of regulatory and market developments.
