Proscripst organizations, including Tehreek-E-Taliban Pakistan (TTP), are raising funds through cryptocurrencies, with recent appeals to arise financial aid on online platforms.
According to BBC Pakistan, TTP, in a message posted on Telegram, has urged its followers to contribute funds through a Binance account.
This is not the first instance of a forbidden outfit that seeks financial assistance through cryptocurrency, since similar cases have been reported worldwide. Pakistan has also previously arrested people for facilitating terrorism through cryptocurrency.
The counter-terrorism department (CTD), Karachi’s superior officer, Raja Umar Khattab, told BBC that, although the police have made some arrests in this regard, the practice remains relatively uncommon in Pakistan.
Although cryptocurrency is illegal in Pakistan, a large number of Pakistani are dedicated to cryptography related companies. In recent weeks, the Government has established a cryptographic council to write recommendations to grant legal status.
Worldwide, extremist organizations continue to exploit digital currencies for financing.
According to the Soufan Center, the Khorasan branch of the so -called Islamic State (IS) uses monero cryptocurrency due to its improved privacy characteristics, which hinders tracking.
Riccardo Valle, a Italian headquarters, told the BBC that terrorist organizations widely use cryptocurrencies for fundraising, which allows them to move money in secret unless their cryptographic wallets are exposed.
He pointed out that, although there are similar networks in Pakistan, extremist groups in the country depend mainly on mobile wallets, local digital banking systems or traditional financing methods such as cash and Hawala.
The expert in digital economy Uzair Youngo said there were global concerns about the use of cryptocurrency in terrorist financing and money laundering. However, he said that risks can be minimized through regulations.
He recommended implementing a license framework for cryptography merchants, demanding that they share the details of the transaction with the law enforcement agencies.
He added that there was no alternative to establish a regulatory framework.
