Pakistan launches crypto crime unit to target money laundering

Pakistan’s Federal Investigation Agency has created a dedicated cryptocurrency investigation unit as the country builds a broader system for regulating and policing digital assets.

Summary

• Pakistan’s FIA created a specialist crypto unit to investigate money laundering and terrorism financing cases.
• The new unit will operate alongside PVARA as Pakistan expands oversight of licensed digital assets.
• Officials also want cybercrime and anti-narcotics agencies to build dedicated teams for crypto-linked criminal investigations.

The new unit sits within the FIA’s National Command and Control Centre, or NC3, and will investigate the suspected use of cryptocurrencies in money laundering, terrorism financing and other crimes, Dawn reported. The move separates criminal investigations from the work of the Pakistan Virtual Assets Regulatory Authority, which oversees the country’s regulated digital asset sector.

Muhammad Athar Waheed, director of the FIA’s Counter-Terrorism Wing, said PVARA remains responsible for digital asset regulation, while the FIA will focus on possible criminal activity involving cryptocurrencies. He also called for the National Cyber Crime Investigation Agency and the Anti-Narcotics Force to create similar specialist teams for cybercrime and drug-related cases involving digital assets.

FIA builds dedicated capacity for crypto investigations

The cryptocurrency investigation team forms part of a wider upgrade at the FIA’s NC3. The command centre brings several investigative and monitoring functions onto one platform. These include anti-money laundering teams, border monitoring, intelligence coordination, cyber patrols, dark web investigations and cooperation with Interpol.

Officials said the system allows the agency to coordinate cases across its offices and monitor investigations in real time. The FIA is also introducing new rules aimed at completing inquiries within set timeframes. One official said “many new things are in the pipeline” as the agency continues expanding its investigative capacity.

The agency’s move comes as governments and law enforcement bodies worldwide increase their focus on how criminals move funds through digital assets. Crypto transactions remain visible on public blockchains in many cases, but investigators often need specialist tools and training to trace funds across wallets, exchanges, bridges and different networks.

In Pakistan, the FIA’s new unit gives law enforcement a team focused specifically on that work. Meanwhile, PVARA will continue handling licensing and supervision rather than criminal investigations. This creates separate roles for market regulation and law enforcement as Pakistan develops its formal crypto framework.

Pakistan expands its regulated digital asset market

The launch follows months of changes to Pakistan’s cryptocurrency rules. The Virtual Assets Act 2026 established PVARA as the federal authority responsible for supervising virtual asset service providers, including exchanges, custodians, brokers and token issuers. The regulator has also been working on operating standards for companies seeking to serve local users.

As crypto.news previously reported, the State Bank of Pakistan also allowed regulated banks to provide accounts to PVARA-licensed digital asset companies in April. Banks must verify licences, monitor accounts and keep customer funds separate from company money. They must also continue following anti-money laundering and counterterrorism financing requirements.

The banking decision followed Pakistan’s earlier effort to bring international trading platforms into a licensed market. As previously reported, PVARA invited global exchanges and other virtual asset service providers to apply for approval to operate in the country. Applicants must provide information on compliance records, security systems, financial details and local business plans.

These regulatory steps have created a formal route for licensed crypto activity while the FIA builds tools to investigate suspected crimes. The two systems serve different functions: PVARA sets and enforces rules for registered businesses, while law enforcement investigates possible violations of criminal law.

Stablecoins and Bitcoin remain part of Pakistan’s plans

Pakistan has also explored wider uses for blockchain-based financial systems. As crypto.news reported, the government signed an agreement in January with SC Financial Technologies, an affiliate of World Liberty Financial, to study the possible use of the USD1 stablecoin for cross-border payments.

The country has also discussed plans for a state-held Bitcoin reserve and the use of surplus electricity for Bitcoin mining and artificial intelligence data centres. Earlier policy discussions also covered cooperation with international crypto companies as Pakistan sought to bring more digital asset activity into a regulated system.

However, the rapid expansion of the sector has also brought closer attention to financial crime controls. The State Bank requires regulated institutions to report suspicious activity under existing anti-money laundering rules, while the FIA’s new unit will investigate cases where authorities suspect digital assets played a role in criminal activity.

Pakistan’s latest move therefore adds a dedicated law enforcement layer to its developing crypto framework. PVARA will continue supervising licensed companies, while the FIA’s specialist unit will focus on alleged criminal use of digital assets. Other federal agencies could also establish their own crypto-focused teams if they follow the recommendation made by the FIA’s Counter-Terrorism Wing director.