In brief
- Pakistan's Federal Investigation Agency has set up a dedicated cryptocurrency investigation unit to tackle money laundering and terrorism financing carried out through digital assets.
- The unit sits inside the FIA's new National Command and Control Centre and will probe the criminal use of crypto, while the Pakistan Virtual Assets Regulatory Authority handles regulation.
- It marks the enforcement side of a rapid national crypto push that has included lifting a banking ban, planning exchange licences and courting Trump-linked crypto ventures.
Pakistan's top federal investigators have set up a dedicated unit to police crypto-linked crime, building out the enforcement side of a national drive to embrace digital assets.
The Federal Investigation Agency (FIA) has established a cryptocurrency investigation unit in its newly operational National Command and Control Centre (NC3), targeting money laundering and terrorism financing conducted through virtual currencies, the agency's counter-terrorism chief said.
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. He urged two other agencies—the National Cyber Crime Investigation Agency and the Anti-Narcotics Force—to build similar units to counter crypto's use in cybercrime and the drug trade, and said new rules were being drafted to wrap up inquiries within fixed timeframes.
The NC3 centre brings the FIA's financial-crime tools onto one platform, 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.
Pakistan and crypto
Pakistan, which ranked third in the Chainalysis 2025 Global Crypto Adoption Index, has moved aggressively to formalize the sector. Islamabad has lifted an eight-year crypto banking ban, created PVARA, begun advancing licences for crypto exchanges and explored tokenizing state assets.
It has also woven crypto into its diplomacy with Washington, striking a deal with an affiliate of World Liberty Financial—the Trump family's crypto venture—to explore using its USD1 stablecoin for cross-border payments.
That embrace hit a snag in June, when the influential Jamia Darul Uloom Karachi seminary ruled that cryptocurrency is not "wealth" under Islamic law and therefore not a valid means of payment—a fatwa that cast doubt on the government's plans. 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, telling Reuters that Pakistan could "lead the world in Shariah-compliant digital finance."
For now, the FIA unit gives Islamabad an enforcement arm to match its regulatory ambitions—even as the question of whether crypto is permissible at all, in the eyes of the country's religious scholars, remains unresolved.
Facts Only
* The Federal Investigation Agency (FIA) set up a cryptocurrency investigation unit inside the National Command and Control Centre (NC3).
* The unit targets money laundering and terrorism financing through virtual currencies.
* The Pakistan Virtual Assets Regulatory Authority (PVARA) handles the regulation of digital assets.
* Dr. Muhammad Athar Waheed stated the unit would investigate the criminal use of crypto.
* The NC3 center integrates FIA financial-crime tools, including anti-money laundering desks and virtual-currency investigation desks.
* The NCA3 also includes an Interpol coordination point and units for open-source intelligence and dark web investigation.
* Pakistan lifted an eight-year crypto banking ban.
* Pakistan created the Pakistan Virtual Assets Regulatory Authority (PVARA).
* Pakistan explored tokenizing state assets.
* Pakistan struck a deal with a World Liberty Financial affiliate to explore using a USD1 stablecoin for cross-border payments.
* Jamia Darul Uloom Karachi seminary ruled cryptocurrency is not "wealth" under Islamic law and therefore not a valid means of payment.
Executive Summary
The Federal Investigation Agency (FIA) has established a dedicated cryptocurrency investigation unit within its new National Command and Control Centre (NC3) to address money laundering and terrorism financing involving digital assets. This unit will probe the criminal use of cryptocurrencies, while the Pakistan Virtual Assets Regulatory Authority (PVARA) remains responsible for regulating these digital assets. The move represents the enforcement aspect of a broader national effort to embrace digital assets, which includes actions like lifting a banking ban, planning exchange licenses, and engaging in international crypto ventures.
The NC3 center consolidates various FIA tools, including anti-money laundering desks, virtual-currency investigation desks, an Interpol coordination point, and units for cyber patrolling and dark web investigation. Furthermore, the FIA has recommended that other agencies, such as the National Cyber Crime Investigation Agency and the Anti-Narcotics Force, establish similar units to address crypto's role in cybercrime and the drug trade.
Despite these enforcement steps, there is a regulatory tension stemming from religious legal interpretations; a ruling by Jamia Darul Uloom Karachi cast doubt on cryptocurrency being a valid means of payment under Islamic law. However, the PVARA chairman has sought clarification from the seminary to distinguish between speculative tokens and asset-backed instruments like stablecoins and sukuk, aiming for Pakistan to lead in Shariah-compliant digital finance. Currently, the FIA unit provides an enforcement mechanism while regulatory and theological questions remain unresolved regarding crypto's permissibility.
Full Take
The narrative presents a dynamic tension between aggressive state enforcement, regulatory creation, and unresolved doctrinal legitimacy regarding digital assets. The pattern emerging is the establishment of parallel tracks: one focused on operational policing (FIA unit) and another focused on governance (PVARA), layered over an underlying cultural/religious debate (the fatwa). This juxtaposition suggests that institutional action to police criminal activity does not automatically resolve fundamental questions about the asset class's status.
The drive to formalize crypto—lifting bans, creating regulatory bodies, engaging in international diplomacy—shows a clear trajectory toward state-led integration. However, the operational arm (FIA) is being set up concurrently, suggesting an immediate need to control illicit flows rather than waiting for full doctrinal consensus. This creates a system where enforcement acts as a necessary, pragmatic bridge while theological and legal acceptance remains stalled.
The implication for cognitive sovereignty lies in recognizing how state action can precede or bypass philosophical consensus. The government has moved on the practical steps of adoption and policing, attempting to lead globally ("lead the world in Shariah-compliant digital finance"), while simultaneously managing internal uncertainty regarding legitimacy. This raises the question: whose definition of "value" or "payment" should ultimately govern regulation, and what are the long-term societal costs of prioritizing enforcement over comprehensive ethical grounding? What framework governs when pragmatic necessity overrides foundational belief?
Sentinel — Human
The text is a well-structured journalistic report detailing specific governmental actions, balancing enforcement details with significant cultural and legal friction points.