Pakistan's FIA Launches Crypto Investigation Unit for Money Laundering
In brief
- Pakistan's FIA established crypto investigation unit within National Command and Control Centre to police virtual-currency crime
- Enforcement pairs with regulatory reform: PVARA licenses exchanges while FIA investigates illicit activity
- Pakistan ranks third in global crypto adoption but faces Islamic law constraints on stablecoins
Enforcement and Regulation Split
FIA Counter-Terrorism Wing Director Dr Muhammad Athar Waheed told local media outlet Dawn the unit would investigate the criminal use of crypto, while the recently created Pakistan Virtual Assets Regulatory Authority (PVARA) remains the body responsible for regulating digital assets. The separation of duties mirrors mature financial systems: enforcement pursues bad actors; regulation builds the legitimate infrastructure.
The National Command and Control Centre integrates the FIA's financial-crime tools including anti-money laundering and virtual-currency investigation desks, an Interpol coordination point, and units for open-source intelligence, cyber patrolling and dark web investigation. Dr Waheed urged two other agencies—the National Cyber Crime Investigation Agency and the Anti-Narcotics Force—to build similar units, suggesting a coordinated federal push.
Why Now?
Pakistan ranked third in the Chainalysis 2025 Global Crypto Adoption Index, yet the country lacked dedicated crypto enforcement. That gap is closing. Islamabad has lifted an eight-year crypto banking ban as part of formalization efforts and begun advancing licences for crypto exchanges. The FIA unit fills the enforcement side.
Recent moves show ambition beyond policing. Pakistan struck a deal with an affiliate of World Liberty Financial to explore using its USD1 stablecoin for cross-border payments. Yet religious constraints persist. In June, the Jamia Darul Uloom Karachi seminary issued a fatwa ruling that cryptocurrency is not "wealth" under Islamic law and therefore not a valid means of payment.
PVARA chairman Bilal bin Saqib has since asked the seminary to distinguish between purely speculative tokens and asset-backed instruments such as fully reserved stablecoins and blockchain-recorded sukuk. The distinction matters. Shariah-compliant frameworks could unlock institutional adoption across the Muslim world.
Pakistan's setup—enforcement unit paired with a licensing regime and stablecoin exploration—suggests the country is building a crypto stack, not just reacting to pressure from the Financial Action Task Force or domestic crime. Whether the FIA unit can scale to match adoption rates remains to be seen.
