Pakistan FIA Launches Elite Cryptocurrency Investigation Unit to Crack Down on Digital Asset Crimes

In a landmark move signaling its bullish commitment to financial innovation, Pakistan's Federal Investigation Agency (FIA) has officially unveiled a specialized cryptocurrency investigation unit dedicated to rooting out digital asset crimes. With a growing regulatory framework gaining momentum and despite facing religious friction, this proactive step positions Pakistan to lead in secure crypto adoption while aggressively targeting illicit activities—a clear win for the future of decentralized finance in the region.

Specialized unit to investigate crypto-related financial crimes

The new unit has been formed under directions from the FIA’s director general and is tasked with investigating a range of offenses, including money laundering, terrorism financing, cybercrimes, and financial fraud connected to the use of cryptocurrencies.

Officials stated that the cryptocurrency investigation unit will actively monitor digital asset activities, employ advanced investigative techniques, and execute measures intended to promote lawful cryptocurrency use within Pakistan.

The unit operates inside the National Cyber Crime Control (NC3) division of the FIA, a central agency that coordinates anti-money laundering activities, virtual asset oversight, cyber patrols, dark web monitoring, open-source intelligence, and international cooperation through Interpol.

Dr. Muhammad Athar Waheed, director of the FIA Counter Terrorism Wing, explained that the new unit is focused solely on criminal investigations. He also called on the National Cyber Crime Investigation Agency and the Anti-Narcotics Force to replicate the model by setting up additional dedicated units to tackle crypto-linked crimes.

“The Cryptocurrency Investigation Unit will focus on criminal investigations, whereas PVARA will remain responsible for the regulation of the virtual asset sector in the country,” said Dr. Muhammad Athar Waheed.

Growing regulatory framework for digital assets

Pakistan’s regulatory approach has intensified amid rapid growth in its crypto sector. In 2025, blockchain analytics firm Chainalysis ranked Pakistan third globally in its Crypto Adoption Index, highlighting significant participation from retail users.

To strengthen oversight, authorities launched the Pakistan Virtual Assets Regulatory Authority (PVARA). This regulatory body, currently chaired by Bilal Bin Saqib, is responsible for granting licenses to crypto exchanges and monitoring virtual asset service providers operating in the country.

The government has also initiated steps to tokenize state-owned assets and entered a partnership with a subsidiary of World Liberty Financial, which will see Pakistan utilize its USD1 stablecoin for cross-border transactions.

With the FIA’s new unit in place, regulatory enforcement is expected to become more robust, supported by technological resources and targeted investigation protocols.

Mini dictionary: FIA (Federal Investigation Agency) is Pakistan’s chief federal law enforcement body, responsible for investigating terrorism, cybercrime, financial crime, and border control violations.

Sector faces religious friction amid reforms

Beyond regulatory challenges, Pakistan’s digital asset industry must also address ongoing religious debates. Scholars from Jamia Darul Uloom Karachi have reportedly declared that cryptocurrencies do not qualify as “wealth” according to Islamic principles, stimulating national discussions about the compatibility of digital assets with religious finance.

Debate continues, as Islamic scholars contest whether cryptocoins meet Sharia standards, adding complexity to Pakistan’s evolving crypto landscape.

Attention now turns to how efficiently the FIA’s new investigation unit will operate alongside PVARA within the maturing digital asset regulatory environment. Progress on licensing exchanges and tackling illicit activity will determine Pakistan’s emergence as a well-regulated digital asset hub in South Asia.