The Federal Investigation Agency (FIA) has established a Virtual Currency Investigation Cell (VCIC) to combat the misuse of cryptocurrencies and blockchain technology for terrorist financing, money laundering and other financial crimes.
According to an official notification, the new unit has been created with the approval of the Director General FIA as part of Pakistan's efforts to strengthen financial security and comply with the National Action Plan (NAP) and Financial Action Task Force (FATF) recommendations.
Focus on terror financing and cybercrime
The specialised investigation cell will probe cases involving:
- Money laundering through digital assets
- Terrorist financing
- Cybercrime linked to cryptocurrencies
- Financial fraud involving virtual assets
- Illegal and undocumented cryptocurrency trading
The FIA said the unit will conduct forensic analysis of suspicious cryptocurrency transactions, blockchain records and digital wallets, including cold wallets used to store crypto assets offline.
National coordination centre to be established
A National Command and Control Centre will also be established under the new cell to coordinate investigations and intelligence sharing.
The FIA will work closely with several national institutions, including:
- National Accountability Bureau (NAB)
- Federal Board of Revenue (FBR)
- National Counter Terrorism Authority (NACTA)
- Provincial police departments
- Other relevant federal and provincial agencies
The move aims to centralise investigations involving digital financial crimes under a single platform.
Modern technology to track criminal networks
Officials said the FIA will use advanced forensic tools, blockchain analytics and internationally recognised investigative procedures to identify and dismantle criminal networks exploiting virtual currencies.
The initiative is intended to improve Pakistan's capability to investigate increasingly sophisticated financial crimes involving digital assets.
Crypto market regulation
The FIA said the newly established Pakistan Virtual Assets Regulatory Authority (PVARA) will regulate the country's virtual asset market.
Under the proposed regulatory framework:
- Only licensed cryptocurrency service providers will be allowed access to Pakistan's banking system.
- Strict legal action will be taken against individuals and entities involved in illegal or undocumented cryptocurrency trading.
Officials said the measures are aimed at improving transparency in the virtual assets sector while preventing its misuse for criminal and terrorist activities.
