Pakistan FIA launches crypto crime unit as regulatory split takes shape

The launch follows months of changes to Pakistan’s cryptocurrency rules. The Virtual Assets Act 2026 established PVARA as the federal authority responsible for supervising virtual asset service providers, including exchanges, custodians, brokers and token issuers. The regulator has also been working on operating standards for companies seeking to serve local users.

As crypto.news previously reported, the State Bank of Pakistan also allowed regulated banks to provide accounts to PVARA-licensed digital asset companies in April. Banks must verify licences, monitor accounts and keep customer funds separate from company money. They must also continue following anti-money laundering and counterterrorism financing requirements.

The banking decision followed Pakistan’s earlier effort to bring international trading platforms into a licensed market. As previously reported, PVARA invited global exchanges and other virtual asset service providers to apply for approval to operate in the country. Applicants must provide information on compliance records, security systems, financial details and local business plans.

These regulatory steps have created a formal route for licensed crypto activity while the FIA builds tools to investigate suspected crimes. The two systems serve different functions: PVARA sets and enforces rules for registered businesses, while law enforcement investigates possible violations of criminal law.

Pakistan has also explored wider uses for blockchain-based financial systems. As crypto.news reported, the government signed an agreement in January with SC Financial Technologies, an affiliate of World Liberty Financial, to study the possible use of the USD1 stablecoin for cross-border payments.

The country has also discussed plans for a state-held Bitcoin reserve and the use of surplus electricity for Bitcoin mining and artificial intelligence data centres. Earlier policy discussions also covered cooperation with international crypto companies as Pakistan sought to bring more digital asset activity into a regulated system.

The rapid expansion of the sector has brought closer attention to financial crime controls. The State Bank requires regulated institutions to report suspicious activity under existing anti-money laundering rules. The FIA’s new unit will investigate cases where authorities suspect digital assets played a role in criminal activity.

Pakistan’s latest move adds a dedicated law enforcement layer to its developing crypto framework. PVARA will continue supervising licensed companies, while the FIA’s specialist unit will focus on alleged criminal use of digital assets. Other federal agencies could also establish their own crypto-focused teams if they follow the recommendation made by the FIA’s Counter-Terrorism Wing director.