Pakistan forms crypto unit to combat money laundering

Pakistan has established a dedicated cryptocurrency investigation unit within its Federal Investigation Agency, marking a significant step in its dual-track strategy to regulate the digital asset sector while combating financial crime. The unit, housed in the agency's National Command and Control Centre, will focus on investigating money laundering, terrorism financing, and other illicit activities involving virtual currencies.

The move strengthens enforcement capabilities as the country simultaneously develops a formal licensing framework for crypto businesses through the Pakistan Virtual Assets Regulatory Authority, or PVARA. FIA Counter-Terrorism Wing Director Dr. Muhammad Athar Waheed confirmed the unit's role, stating that while PVARA remains the primary regulator for licensing and supervision, the new investigative body will handle criminal probes. Waheed also recommended that other agencies, such as the National Cyber Crime Investigation Agency and the Anti-Narcotics Force, create similar specialized teams.

This regulatory shift represents a notable evolution from Pakistan's earlier stance, which included official warnings about digital assets. The government established...