The Federal Investigation Agency (FIA) has established a Virtual Currency Investigation Cell (VCIC) to prevent the misuse of cryptocurrencies and blockchain technology for terror financing, money laundering and other financial crimes.

According to an official notification, the new specialised unit, which has been created with the approval of the FIA director general, will focus on preventing the criminal use of virtual currencies and strengthening the country’s capacity to investigate crypto-related offences.

As part of the initiative, the FIA will set up a National Command and Control Centre under the Virtual Currency Investigation Cell to coordinate investigations and intelligence-sharing among key federal and provincial institutions.

The notification said the National Accountability Bureau (NAB), police, the Federal Board of Revenue (FBR), the National Counter Terrorism Authority (NACTA) and other relevant agencies would work closely with the centre.

The cell will serve as a central platform for investigations into money laundering, terrorism financing and cybercrime, while also monitoring financial fraud involving digital assets.

It will conduct forensic analysis of suspicious cryptocurrency transactions, blockchain activities and cold wallets, and use advanced technology and internationally recognised investigative practices to dismantle criminal networks operating through virtual assets.

The notification said the Pakistan Virtual Assets Regulatory Authority (PVARA) will regulate the country’s virtual asset market.

Only licensed cryptocurrency service providers will be permitted access to the banking system, while authorities will take strict legal action against individuals and entities involved in illegal or undocumented crypto trading.

The authorities said the move has been taken in line with the National Action Plan (NAP) and the recommendations of the Financial Action Task Force (FATF) to strengthen Pakistan’s framework against financial crime and terrorism financing.