Prescribed organizations, including Tehreek-E-Taliban Pakistan (TTP), collect money through cryptocurrency, with recent financial support on online platforms.
According to the BBC Pakistan, TTP in a message released on Telegram has called on its supporters to contribute funds through a Binance account.
This is not the first case of a prohibited clothing seeking financial assistance through cryptocurrency as similar cases have been reported globally. Pakistan has also previously arrested individuals to facilitate terrorism through cryptocurrency.
The Department of Terrorism (CTD) Karachi’s senior officer, Raja Umar Khattab, told the BBC that although law enforcement has made some arrests in this regard, practice remains relatively uncommon in Pakistan.
Despite the fact that cryptocurrency is illegal in Pakistan, a large number of Pakistanis employs crypto-related businesses. In recent weeks, the government has established a cryptor council to prepare recommendations to give the legal status.
Globally, extremist organizations continue to utilize digital currencies for funding.
According to the Soufan Center, the Khorasan branch of the so-called Islamic State (IS) uses cryptocurrency Monero because of its improved privacy functions, making it difficult to track.
Riccardo Valle, an Italy-based researcher, told the BBC that terrorist organizations are widely using cryptocurrency for fundraising, allowing them to move money secretly unless their crypto drawing books are postponed.
He noted that although there are similar networks in Pakistan, extremist groups in the country are primarily dependent on mobile wallets, local digital banking systems or traditional financing methods such as cash and Hawala.
Digital Economics -Expert Uzir Younus said there were global concerns about Cryptocurrency’s use in terrorist financing and money laundering. However, he said that risks can be minimized through rules.
He recommended the implementation of a licensing framework for crypto traders, which required them to share transaction information with law enforcement authorities.
He added that there was no alternative to establishing a regulatory framework.
