Pakistan establishes a special unit to combat crypto crimes: a new stage of regulation
The Federal Investigation Agency (FIA) of Pakistan has officially launched a specialized unit aimed at investigating crimes related to the use of cryptocurrencies. The main focus of the new body is combating money laundering and terrorist financing through digital assets. The unit is integrated into the newly established National Command and Control Center (NC3), which unites the country's key law enforcement and intelligence agencies.
Division of Powers and New Structure
As explained by the Director of the FIA's Anti-Terrorism Wing, Muhammad Athar Waheed, the new unit will specialize exclusively in the criminal aspect of digital currency use. Meanwhile, market regulation and licensing of participants remain under the purview of the Pakistan Virtual Assets Regulatory Authority (PVARA). In addition to the new department, NC3 includes structures for anti-money laundering, cyber patrolling, open-source intelligence, as well as an Interpol coordination center and a unit for investigating darknet activity. Waheed also called on the National Cyber Crimes Investigation Agency and the Anti-Narcotics Force to create similar specialized departments, and announced the development of regulations with deadlines for investigations.
Formation of the Regulatory Environment
Pakistan is actively restructuring its policy regarding cryptocurrencies. In April, the State Bank of the country revoked an outdated 2018 circular that completely banned banks from working with crypto companies. Financial organizations can now open accounts for Virtual Asset Service Providers (VASPs) that have preliminary permission (NOC certificate) from PVARA. Full operational activity will become possible only after obtaining a final license, for which the application process has already begun.
Simultaneously, authorities are engaged in a complex dialogue with religious circles. In June, Jamia Darul Uloom Karachi issued a fatwa stating that cryptocurrency is not recognized as property under Islamic law, calling into question its use as a means of payment. However, PVARA Chairman Bilal bin Saqib called for a differentiated approach, proposing to separate speculative tokens from backed digital assets (stablecoins, tokenized gold, Islamic bonds on the blockchain).
Analytical Commentary: The creation of a specialized FIA unit is a logical step for a country trying to balance attracting crypto investments with strict control. However, the key challenge remains the same: without clear religious approval and a stable legislative framework, Pakistan risks deterring both international investors and local players, who will continue to move into the gray zone. Real liquidity and market confidence will only emerge after PVARA completes the licensing process and resolves the issue of the Sharia status of digital assets.