Pakistan Expands Crypto Regulation With New FIA Investigation Unit

Pakistan has taken a major step in strengthening its crypto regulation. The country has established a dedicated crypto unit under the Federal Investigation Agency (FIA) to tackle crimes and threats related to digital assets. The team will focus on areas such as money laundering, terrorism financing, and other illegal activities involving cryptocurrencies.

Notably, Pakistan has been taking initiatives over the past few years to solidify its position in the global crypto market. As part of this vision, the country has introduced several measures to foster market growth as well as ensure investor protection.

Pakistan boosts crypto regulation, FIA establishes unit to fight crimes

Local media reports reveal that Pakistan’s FIA is currently focusing on establishing a separate unit to combat the growing number of crypto-related thefts. FIA’s Counter-Terrorism Wing Director, Muhammad Athar Waheed, stated that the new unit will probe into the use of cryptocurrencies in financial crimes.

According to reports, the FIU’s specialized team will work together with the Pakistan Virtual Assets Regulatory Authority. PVARA is responsible for Pakistan’s crypto regulation, handling the oversight and licensing of digital asset platforms. The two bodies together will strengthen the country’s crypto regulation with the vision of preventing the illegal use of cryptocurrencies.

Further, Waheed highlighted the importance of establishing strong crypto investigation teams by other law enforcement agencies, such as the National Cyber Crime Investigation Agency (NCCIA) and the Anti-Narcotics Force (ANF). He believes that coordinated efforts could boost the country’s crypto regulation efforts, thus helping to curb illegal activities. Waheed added,

“With the introduction of several reform initiatives, the FIA has already demonstrated significant improvement in its performance, and we expect a number of additional key projects to be completed over the next six months.”

How is Pakistan accelerating its crypto adoption?

Reportedly, Pakistan is ranked third in global crypto adoption. As the government recognized the growing demand for cryptocurrencies in the country, the authority introduced strategic measures to support the industry’s growth along with protecting investors.

As an initial step, Pakistan introduced new crypto regulations with the launch of the Pakistan Virtual Assets Regulatory Authority (PVARA) last year. Soon, the country lifted its eight-year ban on crypto banking and similar services. Following the launch of new crypto regulations, the country started issuing licenses to exchanges and platforms. The country has also explored other innovative areas like real-world asset (RWA) tokenization and stablecoin payment solutions.

In addition, the government has strengthened in international crypto ties. For instance, Pakistan signed an agreement with World Liberty Financial, a Web3 project tied to US President Donald Trump. The deal allows Pakistan to explore the use of WLF’s USD1 stablecoin for cross-border payments. BTC advocate Michael Saylor has also expressed his support for the country’s Bitcoin Reserve project. 

AI to boost broader security

Interestingly, Pakistan has announced its decision to use artificial intelligence (AI) to strengthen border security, along with the latest crypto regulation. FIA Additional Director General Nouman Siddiqui stated that AI could help identify suspicious travel patterns, detect emerging trafficking areas, and increase screening. He added,

“FIA’s recent initiatives and direction in data integration, AI analytics and dedicated crypto investigation cell will prove to be quite useful for preventing human smuggling as per international best practices and requirements.”