Pakistan Launches Crypto Investigation Unit to Combat Money Laundering

Pakistan Establishes Specialized Crypto Investigation Unit

According to local newspaper Dawn, Pakistan is continuing to implement its strategy for developing the digital asset industry. The country’s Federal Investigation Agency (FIA) has officially established the Crypto Investigation Unit, a specialized division responsible for investigating crimes involving digital assets, including money laundering, terrorist financing and financial fraud. The new unit will operate under the National Command and Control Centre (NC3), a recently established FIA command centre that coordinates efforts to combat financial crime and cybersecurity threats.

The Pakistan Virtual Assets Regulatory Authority (PVARA) will continue to regulate and supervise the country’s cryptocurrency market.

The FIA is also developing a dedicated set of rules intended to shorten the time required to process cases involving digital assets and improve law enforcement efficiency in the crypto sector. Muhammad Athar Waheed, Director of the FIA’s Counter-Terrorism Wing, proposed that the National Cyber Crime Investigation Agency and the Anti-Narcotics Force establish similar units. The initiative is intended to strengthen efforts against the use of cryptocurrency in cybercrime and illegal drug trafficking.

Pakistan Accelerates Development of Its Digital Asset Market

The creation of the specialized crypto investigation unit is the latest step in the industry development strategy Pakistan has pursued for more than a year.

Since 2025, the country’s authorities have been steadily expanding the regulatory framework for digital assets. In March 2026, Pakistan’s parliament passed the Virtual Assets Act, formally establishing the Pakistan Virtual Assets Regulatory Authority as a permanent federal regulator. Its responsibilities include licensing cryptocurrency exchanges, custodial service providers and token issuers. Pakistan has also announced several major digital asset initiatives, including plans to launch a national stablecoin, establish a Bitcoin reserve, allocate 2,000 MW of electricity to Bitcoin mining and cooperate with the Binance crypto exchange to tokenize $2 billion worth of state-owned assets.

However, Pakistan’s ambition to become a major global cryptocurrency hub continues to face significant challenges.

In June 2026, Jamia Darul Uloom Karachi, one of the country’s most influential Islamic seminaries, issued a fatwa stating that cryptocurrency cannot be recognized as property under Islamic law and therefore cannot be used as a valid means of payment. In response, PVARA Chairman Bilal bin Saqib urged Islamic scholars to distinguish between speculative tokens and fully backed digital assets, including stablecoins and Islamic bonds recorded on a blockchain. He said Pakistan still has an opportunity to become one of the first countries to establish a digital finance market that complies with Sharia principles.

Conclusion: The establishment of a specialized investigation unit shows that Pakistan intends to develop its cryptocurrency market while strengthening oversight of illegal activity. The success of this strategy will depend on effective cooperation between regulators, banks and law enforcement agencies, as well as the government’s ability to balance financial innovation with the requirements of Islamic law.