Pakistan Cracks Down on Crypto with New Crime Unit and Regulatory Framework

Pakistan has established a dedicated cryptocurrency crime unit to investigate money laundering and terrorism financing cases. The unit, located within the National Command and Control Centre, will focus on virtual assets used in financial crimes.

The Federal Investigation Agency (FIA) is also strengthening its operations by forming SWAT teams, expanding its fleet, and recruiting 1,300 officials. This move is expected to lead to more cross-border requests to exchanges and analytics vendors, faster execution on warrants, and a lower threshold for opening cases when red flags appear.

The Pakistan Virtual Assets Regulatory Authority (PVARA) has also been working on regulating the market, with a public consultation on its draft Virtual Asset Services Regulations. The document outlines a 10-category licensing framework for Virtual Asset Service Providers (VASPs) and a no-objection-certificate to licence pathway.