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Pakistan Tightens Crypto Crackdown With New Investigation Team

Pakistan's new crypto investigation unit will focus on money laundering, terrorism financing, and other crimes involving digital assets.

Written By Iyiola Adrian
Edited by Shubham Soni
Published 1 hour ago
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Pakistan Tightens Crypto Crackdown With New Investigation Team

Key Highlights

  • The FIA has created a special unit to investigate money laundering, terrorism financing, and other crimes involving cryptocurrencies. 
  • The new unit will operate from the National Command and Control Centre (NC3), bringing together cybercrime and anti-money laundering.
  • Pakistan continues to strengthen its crypto industry through new regulations and licensing while expanding enforcement against illegal activities.

Pakistan has taken another step in its growing push toward digital assets by launching a special unit to investigate crimes involving cryptocurrency. 

According to a local report, the Federal Investigation Agency (FIA) has set up the new cryptocurrency investigation unit at its recently opened National Command and Control Centre (NC3). The regulator said the unit will focus on tracking and investigating illegal activities involving digital assets, especially money laundering and terrorism financing, as the country continues to build rules for its crypto sector. 

FIA launches dedicated team 

The new unit was announced by FIA Counter-Terrorism Wing Director Dr. Muhammad Athar Waheed, who said it will investigate the criminal use of cryptocurrencies while the Pakistan Virtual Assets Regulatory Authority (PVARA) remains in charge of regulating the country’s digital asset industry. 

He added the National Cyber Crime Investigation Agency (NCCIA) and the Anti-Narcotics Force (ANF) should create similar teams to deal with cybercrime and drug-related activities linked to cryptocurrency. According to Waheed, the government is also preparing new rules that will help ensure investigations are completed within a set period instead of dragging on for long. 

How NC3 will work

The new investigation unit is part of the FIA’s National Command and Control Centre, known as NC3. The center brings together several key law enforcement tools, allowing different departments to work faster and share information more easily. It includes anti-money laundering and virtual currency investigation units, an Interpol coordination desk, cyber patrolling teams, open-source intelligence tools, and dark web investigation units. 

By placing these teams under one command, the FIA aims to respond more quickly to financial crimes and other threats involving digital assets.

NC3 also supports several other security operations across the country. It monitors immigration and border activities, tracks suspicious travel patterns, assists investigations into human trafficking networks, and allows officials to monitor investigations through a central case management system. 

The center also provides a 24-hour public helpline, complaint management services, and support for overseas Pakistanis. Officials said the platform improves communication between different agencies and gives senior leaders a better picture of ongoing operations across the country. 

“With the introduction of several reform initiatives, the FIA has already demonstrated significant improvement in its performance, and we expect a number of additional key projects to be completed over the next six months,” Dr. Waheed said. He also credited Interior Minister Mohsin Naqvi for supporting efforts to modernize the agency and strengthen its ability to fight crime.

Crypto rules keep evolving

Pakistan has also been active in developing its crypto sector over the years. The country even ranked third in the 2025 Chainalysis Global Crypto Adoption Index and has taken steps to protect its citizens. 

Authorities have already appointed Pakistan’s new crypto investigation unit will focus on money laundering, terrorism financing, and other crimes involving digital assets.

Banks get the green light

The government has also changed its banking policy to support the regulated crypto industry. Earlier this year, the State Bank of Pakistan lifted restrictions that had stopped banks from providing services to crypto businesses since 2018. 

Under the new rules, banks can now open accounts for crypto companies that receive licenses from PVARA. However, the system comes with strict conditions. Banks must first confirm that a company is properly licensed, while customer funds must be kept separate from company funds in non-interest-bearing accounts. Those funds also cannot be used as collateral for loans or other credit facilities. 

Crypto growth meets religious debate 

Pakistan has also been looking beyond its borders as part of its crypto plans. Earlier this year, the country reached an agreement with an affiliate of World Liberty Financial to explore using the USD1 stablecoin for cross-border payments. 

At the same time, the government’s digital asset plans have faced questions from some religious scholars. In June, Jamia Darul Uloom Karachi said cryptocurrencies do not qualify as “wealth” under Islamic law and should not be treated as a valid form of payment. 

Since then, PVARA Chairman Bilal bin Saqib has asked scholars to make a clear distinction between speculative cryptocurrencies and asset-backed digital products such as fully reserved stablecoins and blockchain-recorded sukuk. 

While that discussion continues, the creation of the FIA’s cryptocurrency investigation unit shows Pakistan is working to ensure that stronger regulation is matched with stronger enforcement as its digital asset industry continues to develop.

Also Read: Pakistan’s Top Islamic Scholar Rules Bitcoin, Ethereum, and USDT Haram

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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