Pakistan’s FIA Establishes Dedicated Unit to Combat Crypto-Related Cybercrime and Financial Fraud

Pakistan’s Federal Investigation Agency (FIA) has taken a significant step in addressing the growing complexities of the digital asset landscape by establishing a specialized investigative unit. This new unit is specifically tasked with probing cases involving cybercrime and financial fraud that are intricately linked to cryptocurrency transactions. The move underscores the Pakistani government’s increasing recognition of the challenges and risks associated with the burgeoning crypto market.

The establishment of this dedicated crypto investigation unit was first reported by Dawn news on Tuesday. Its primary mandate will be to meticulously examine and investigate the use of digital assets in criminal activities. This includes identifying illicit flows of funds, money laundering schemes, and other fraudulent operations that leverage cryptocurrencies. While the FIA will focus on enforcement and investigation, the regulatory oversight of digital assets will remain with Pakistan’s Virtual Assets Regulatory Authority (PVARA). This division of responsibility aims to create a comprehensive framework for managing the crypto ecosystem, separating investigative powers from regulatory authority.

Muhammad Athar Waheed, Director of the FIA’s Counter-Terrorism Wing, is reportedly a key proponent of this initiative. He has recommended that other agencies across Pakistan consider establishing similar specialized units. This suggests a broader recognition within the Pakistani law enforcement and security apparatus of the need for enhanced capabilities to tackle crypto-related crime effectively. The proliferation of digital assets, while offering potential economic benefits, also presents new avenues for sophisticated criminal enterprises. The establishment of such units is a proactive measure to stay ahead of these evolving threats.

The context for this development is Pakistan’s rapidly expanding presence in the global cryptocurrency market. Bilal Bin Saqib, who chairs PVARA, highlighted the country’s significant position in this sector. In December 2025, he stated that Pakistan ranked as the world’s third-largest crypto market based on retail activity. This statistic is particularly noteworthy, indicating a substantial level of engagement from ordinary citizens and investors in digital asset trading and utilization. The high retail participation signifies both the potential for economic growth and the increased vulnerability to scams and illicit activities if not properly regulated and policed.

Furthermore, the outlook for Pakistan’s crypto industry has been met with considerable optimism. At the same event where Bilal Bin Saqib shared the market ranking, former Binance CEO Changpeng Zhao (CZ) offered a positive projection for the country. Based on Pakistan’s progress in crypto regulation and adoption, Zhao suggested that the nation could potentially emerge as a global leader in the cryptocurrency industry by the year 2030. This prediction underscores the strategic importance of the crypto sector for Pakistan’s future economic development and its potential to attract international investment and innovation.

The creation of the FIA’s crypto crime-focused unit is the latest in a series of governmental actions aimed at formalizing and managing the digital asset space in Pakistan. This development closely follows the establishment of PVARA in July 2025. The launch of a dedicated regulatory authority was a crucial step in providing a legal and operational framework for cryptocurrency businesses and activities within the country. PVARA’s role is to set standards, issue licenses, and ensure compliance with regulations, thereby fostering a more secure and transparent environment for digital asset participants.

In line with its mandate, PVARA has already made significant strides in bringing major players into the regulated fold. The regulator has reportedly approved licenses for prominent global cryptocurrency exchanges, including Binance and HTX. This move signifies Pakistan’s intent to integrate established international platforms into its regulatory framework, which can bring benefits such as enhanced security, consumer protection, and adherence to anti-money laundering (AML) and know-your-customer (KYC) protocols. The approval of licenses for such large exchanges suggests a deliberate strategy to foster legitimate crypto activity while simultaneously building the capacity to monitor and control it.

The establishment of the FIA’s investigative unit complements PVARA’s regulatory efforts by providing the necessary enforcement arm. While PVARA focuses on setting the rules and granting permissions, the FIA will be responsible for investigating and prosecuting violations of these rules, particularly those involving criminal intent. This dual approach is essential for building trust and confidence in the crypto market, both domestically and internationally. Without robust enforcement mechanisms, regulatory frameworks can be undermined by illicit actors, leading to financial losses for individuals and damage to the country’s reputation.

The FIA’s proactive stance on crypto-related crime is a critical development for the integrity of Pakistan’s financial system. As cryptocurrencies become more embedded in global commerce, the sophistication of cybercriminals and fraudsters also increases. These actors often exploit the perceived anonymity and borderless nature of digital assets to conduct illegal activities. The dedicated unit within the FIA will be equipped with specialized knowledge and tools to track down such individuals and dismantle their operations. This includes expertise in digital forensics, blockchain analysis, and international cooperation with law enforcement agencies in other jurisdictions.

The financial implications of crypto-related fraud can be substantial, ranging from individual investment scams to large-scale money laundering operations that can destabilize economies. By creating a dedicated unit, Pakistan is signaling its commitment to protecting its citizens and its financial infrastructure from these threats. The unit’s focus on both cybercrime and financial fraud highlights the interconnectedness of these issues in the crypto space. Cyberattacks can be used to steal digital assets, which are then often laundered through complex financial schemes.

The recommendation by the FIA’s Counter-Terrorism Wing Director, Muhammad Athar Waheed, for other agencies to establish similar units is indicative of a systemic approach to combating crypto crime. This suggests that the threat is not confined to a single agency but requires a coordinated effort across the national security and law enforcement apparatus. Such inter-agency cooperation is vital for sharing intelligence, resources, and expertise, thereby creating a more formidable defense against crypto-enabled criminal activities.

The global nature of cryptocurrency means that investigations often require international collaboration. The FIA’s new unit will likely need to engage with its counterparts in other countries to trace cross-border transactions and apprehend criminals operating from different jurisdictions. International partnerships are crucial for effectively tackling the transnational nature of cybercrime and financial fraud.

The establishment of PVARA and now the FIA’s dedicated unit signifies a maturing approach by Pakistan towards the cryptocurrency ecosystem. It acknowledges the reality of digital assets and their growing role in the economy, while simultaneously addressing the inherent risks. The goal is to harness the potential benefits of blockchain technology and digital assets while mitigating the potential for abuse.

Cointelegraph, in its reporting, sought comment from the FIA regarding the new crypto unit but did not receive an immediate response. This is a common occurrence in news reporting, especially when sensitive or newly established units are involved. The FIA’s commitment to transparency and timely information will be further tested as the unit becomes operational and begins to provide updates on its activities and successes.

Cointelegraph reiterates its commitment to independent, transparent journalism and produced this news article in accordance with its Editorial Policy. The aim is to provide accurate and timely information to its readership. Readers are always encouraged to verify information independently, a crucial practice in the fast-evolving and often complex world of cryptocurrency. The establishment of specialized units like the one by Pakistan’s FIA is a significant development that warrants close observation and reporting.