Pakistan launches crypto crime investigation unit

TLDR

Pakistans Federal Investigation Agency has created a crypto crime unit to investigate money laundering and terrorism financing via digital assets in one of the worlds largest retail crypto markets.

1. The new Cryptocurrency Investigation Unit sits inside Pakistans NC3 platform, focusing on tracing criminal use of crypto while leaving regulation to a separate authority.
2. Pakistan is pairing tougher enforcement with a formal licensing regime for exchanges and other virtual asset firms, amid ongoing debate over cryptos Sharia compliance.
3. Exchanges and users touching Pakistan should expect stricter KYC/AML checks, more scrutiny of unlicensed services, and evolving rules that could reshape which products are allowed.

Deep Dive

1. What The New Unit Does

Pakistans Federal Investigation Agency (FIA) has set up a dedicated Cryptocurrency Investigation Unit inside its National Command and Control Centre (NC3), tasked with investigating money laundering, terrorism financing and related offenses using digital assets, according to multiple reports from local and international media, including crypto.news.

FIAs Counter-Terrorism Wing director Muhammad Athar Waheed stressed that this unit is about crime investigation, not market oversight, and urged other bodies such as the National Cyber Crime Investigation Agency and Anti-Narcotics Force to create similar crypto-focused teams.

NC3 centralizes tools for anti-money laundering, cyber patrols, dark web investigations and Interpol coordination, giving the new unit a more integrated view of cross-border crypto flows than earlier ad hoc efforts.

2. How It Fits Pakistans Crypto Framework

The enforcement push comes alongside the Virtual Assets Act 2026, which created the Pakistan Virtual Assets Regulatory Authority (PVARA) as the federal regulator for exchanges, custodians, brokers and token issuers, with licensing already granted to major platforms such as Binance and HTX, as noted by Cointelegraph.

Pakistan has also lifted its previous banking restrictions on crypto and allowed regulated banks to serve PVARA-licensed firms, integrating digital assets more directly into the financial system. At the same time, top Islamic scholars are split on whether cryptocurrencies count as wealth under Sharia, with a recent fatwa against many tokens and a regulatory push to carve out asset-backed, fully reserved instruments, highlighted by Bitcoin.com.

This leaves Pakistan in a position where crypto is being formalized through law and licensing, but religious and political consensus on which instruments are acceptable is still evolving.

3. Practical Impact For Exchanges And Users

For exchanges and other virtual asset service providers touching Pakistani users, the combination of a specialist crime unit and a licensing authority signals higher expectations on KYC, transaction monitoring, sanctions screening and clear separation of customer and company funds.

Unlicensed or informal brokers, peer-to-peer desks and platforms that do not meet PVARA standards are more likely to face investigations or access restrictions as enforcement capacity grows. Retail users in Pakistan are being nudged toward regulated platforms, non-custodial wallets and better record-keeping to demonstrate legitimate activity if questioned.

Conclusion

Pakistans new crypto crime unit marks a clear shift from informal tolerance of digital assets to a structured regime that couples enforcement with regulation. The immediate effect is more scrutiny on how crypto is used, not a blanket ban, but the outcome will depend on how PVARA licensing, religious rulings and future specialist units interact. For crypto businesses and users, the direction of travel is toward higher compliance standards and closer monitoring of flows connected to Pakistans large retail market.