In a country where cryptocurrency has already become the third-largest market in the world by retail activity, the authorities have decided not just to observe, but to actively intervene. Pakistan's Federal Investigation Agency (FIA) has created a special unit that will investigate crimes related to digital assets—from fraud to money laundering and terrorism financing.
This is not the state's first attempt to restore order. Back in July 2025, the Virtual Assets Regulatory Authority (PVARA) was established, which issues licenses to exchanges, including Binance and HTX. Now, the FIA is taking on the enforcement side: investigations, not just rules. The director of the FIA's counter-terrorism wing, Muhammad Athar Waheed, has even called on other agencies to create similar structures.
There is a clear logic behind this initiative. In an economy where traditional banks are often inaccessible or unreliable, crypto has become a way to transfer money abroad, protect savings from inflation, and bypass restrictions. But that same freedom opens the door to abuse. The state wants to both regulate and maintain control over flows that already affect millions of people.
Interestingly, the regulator and the investigator are operating in parallel: PVARA is responsible for market development and licensing, while the FIA is responsible for crimes. Such a duo resembles an attempt to simultaneously cultivate a garden and put up fences. On one hand, licenses for exchanges signal openness. On the other, new investigative capabilities show that freedom has clear boundaries.
For the average Pakistani, this means that crypto is ceasing to be a completely 'gray zone.' Those who use it for transfers to relatives or as a hedge against rupee devaluation will now be more careful about the sources of their funds. Those who see it as a tool for gray schemes will face real risks.
Ultimately, Pakistan is demonstrating a classic balance: not to ban, but to tame. The only question is whether it will be possible to maintain the momentum that has already propelled the country to a global leadership position in retail cryptocurrency usage.
