Pakistan sets up crypto investigation unit at NC3

Pakistan’s Federal Investigation Agency has created a cryptocurrency investigation unit inside the newly operational National Command and Control Centre to investigate money laundering and terrorism financing conducted through virtual assets. Dr Muhammad Athar Waheed, director of the FIA Counter-Terrorism Wing, said the unit will ‘investigate the criminal use of crypto’ and work with other law-enforcement teams at the centre.

The NC3 groups anti-money-laundering and virtual-asset investigation desks with an Interpol coordination point and teams for open-source intelligence, cyber patrolling and dark-web probes. Officials said the unit will collaborate with financial-crime specialists to trace illicit flows and support prosecutions linked to crypto-enabled fraud, trafficking and terror financing.

Regulation of virtual assets remains with the Pakistan Virtual Assets Regulatory Authority. The federal government has recently lifted an eight-year ban on banks providing crypto services, begun developing licences for exchanges, explored tokenising state assets and engaged private ventures to pilot a USD1 stablecoin for cross-border payments.

Pakistan ranks among the highest countries in global crypto adoption. Authorities cited that level of use when building investigative capacity to address criminal activity involving digital assets.

Dr Waheed urged the National Cyber Crime Investigation Agency and the Anti-Narcotics Force to set up their own crypto-focused teams for cybercrime and drug-related cases. He said officials are drafting rules to conclude inquiries within fixed timeframes.

Religious and legal questions remain unresolved. An influential seminary issued a ruling finding that cryptocurrency is not ‘wealth’ under Islamic law and therefore not a valid means of payment. Bilal bin Saqib, chairman of PVARA, asked religious scholars to distinguish between speculative tokens and asset-backed instruments such as fully reserved stablecoins and blockchain-recorded sukuk, and said Pakistan could ‘lead the world in Shariah-compliant digital finance.’

Authorities described the FIA unit as the enforcement arm paired with the regulatory framework for virtual assets and said they expect it to close investigative gaps as formal crypto services expand in the country.