The proscribed organizations, including Tehreek-E-Taliban Pakistan (TTP), collect funds via cryptocurrency, with recent calls for surfacing financial assistance on online platforms.
According to BBC Pakistan, TTP, in a message published on Telegram, urged its supporters to contribute funds via a Binance account.
This is not the first case of prohibited attire in search of financial aid through cryptocurrency, as similar cases have been reported worldwide. Pakistan has also stopped individuals for facilitating terrorism by cryptocurrency.
The Department of Terrorism (CTD), the higher officer of Karachi, Raja Umar Khattab, told the BBC that, even if the police had carried out some arrests in this regard, the practice remains relatively rare in Pakistan.
Although the cryptocurrency is illegal in Pakistan, a large number of Pakistani are engaged in companies related to the crypto. In recent weeks, the government has created a cryptographic council to write recommendations to grant legal status.
Globally, extremist organizations continue to exploit digital currencies for funding.
According to the Soufan Center, the Khorasan branch of the so-called Islamic State (IS) uses the monero cryptocurrency because of its improved confidentiality characteristics, which makes the trace difficult.
Riccardo Valle, a researcher in Italy, told the BBC that terrorist organizations largely used cryptocurrency for fundraising, which allows them to move money secretly unless their cryptographic portfolios are exposed.
He noted that if similar networks exist in Pakistan, the country’s extremist groups depend mainly on mobile portfolios, local digital banking systems or traditional financing methods like Cash and Hawala.
The digital economy expert Uzair Yunus said there were global concerns about the use of cryptocurrency in the financing of terrorism and money laundering. However, he said the risks can be minimized through regulations.
He recommended the implementation of a license frame for crypto traders, which forced them to share the details of the transaction with the law enforcement organizations.
He added that there was no alternative to the establishment of a regulatory framework.
