Proscribed organisations, including Tehreek-e-Taliban Pakistan (TTP), are raising funds through cryptocurrency, with recent appeals for financial aid surfacing on online platforms.
According to BBC Pakistan, TTP, in a message released on Telegram, has urged its supporters to contribute funds via a Binance account.
This is not the first instance of a banned outfit seeking financial assistance through cryptocurrency, as similar cases have been reported globally. Pakistan has also previously arrested individuals for facilitating terrorism through cryptocurrency.
Counter-Terrorism Department (CTD) Karachi’s senior officer, Raja Umar Khattab, told BBC that while law enforcement has made some arrests in this regard, the practice remains relatively uncommon in Pakistan.
Despite cryptocurrency being illegal in Pakistan, a large number of Pakistanis are engaged in crypto-related businesses. In recent weeks, the government has established a crypto council to draft recommendations for granting it legal status.
Globally, extremist organisations continue to exploit digital currencies for financing.
According to The Soufan Center, the Khorasan branch of the so-called Islamic State (IS) uses the cryptocurrency Monero due to its enhanced privacy features, making it difficult to trace.
Riccardo Valle, an Italy-based researcher, told BBC that terrorist organizations widely utilise cryptocurrency for fundraising, allowing them to move money secretly unless their crypto wallets are exposed.
He noted that while similar networks exist in Pakistan, extremist groups in the country primarily rely on mobile wallets, local digital banking systems or traditional funding methods like cash and hawala.
Digital economy expert Uzair Younus said there were global concerns over cryptocurrency’s use in terror financing and money laundering. However, he said that risks can be minimised through regulations.
He recommended implementing a licensing framework for crypto traders, requiring them to share transaction details with law enforcement agencies.
He added that there was no alternative to establishing a regulatory framework.