Use of the fakes may worsen choking by pushing obstructions further down the airway, according to MHRA.
Recommendation includes initiatives to curb counterfeiting activities and strengthen intellectual property rights.
The company says the new unit will help it to tap into increasing demand for serialisation services in the region.
Dr Mark Deakes will lead the organisation as it pushes developments in new anti-counterfeit technologies.
Prosecutors said the number of child deaths linked to the contaminated medicines had risen to 68.
Letters say pill presses and stamps that can be used to make fentanyl pills are being offered by online retailers.
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