Pakistan’s Federal Investigation Agency (FIA) has established a Virtual Currency Investigation Cell (VCIC) to investigate the misuse of cryptocurrencies and blockchain technology for terrorism financing, money laundering and other financial crimes.
According to an official notification, the unit was 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 recommendations of the Financial Action Task Force (FATF).
The specialised unit will investigate offences involving money laundering through digital assets, terrorism financing, cryptocurrency-related cybercrime, financial fraud involving virtual assets, and illegal or undocumented cryptocurrency trading.
The FIA said the cell will conduct forensic analysis of suspicious cryptocurrency transactions, blockchain records and digital wallets, including offline “cold wallets” used to store digital assets.
A National Command and Control Centre will also be established under the initiative to coordinate investigations and intelligence sharing.
The FIA said it will work with several government agencies, including the National Accountability Bureau (NAB), the Federal Board of Revenue (FBR), the National Counter Terrorism Authority (NACTA), provincial police departments and other relevant federal and provincial institutions.
Officials said the agency will employ advanced forensic tools, blockchain analytics and internationally recognised investigative techniques to identify and dismantle criminal networks using virtual currencies.
The FIA also 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 permitted access to Pakistan’s banking system, while individuals and entities involved in illegal or undocumented cryptocurrency trading will face legal action.
The measures are intended to strengthen transparency in Pakistan’s virtual assets sector while preventing its use for financial and terrorist-related crimes.