Terrorist groups in Pakistan fundraise using cryptocurrency

Prohibited groups are using cryptocurrency to raise funds. This includes the Tehreek-e-Taliban Pakistan (TTP), which has recently asked supporters for donations via a Binance account on Telegram. This is not the first case of banned organizations seeking funds with cryptocurrency. Similar incidents have been reported worldwide. In Pakistan, authorities have detained individuals for their involvement in using cryptocurrency to support terrorism. Raja Umar Khattab, a senior officer with Karachi's Counter-Terrorism Department, noted that while there have been some arrests, cryptocurrency fundraising is still not very common in Pakistan. The country currently prohibits cryptocurrency, but many citizens still engage in crypto-related activities. The government has recently set up a crypto council to recommend legalizing the digital currency. Around the world, extremist groups continue to take advantage of digital currencies for their finances. The Soufan Center reports that the Khorasan branch of the Islamic State uses Monero because it is harder to trace. Riccardo Valle, a researcher based in Italy, explained that terrorist organizations commonly use cryptocurrencies for fundraising, allowing them to transfer money anonymously unless their digital wallets are discovered. In Pakistan, extremist groups mainly use mobile wallets and local banking methods, along with traditional cash transfer systems. Digital economy expert Uzair Younus raised concerns about the potential misuse of cryptocurrency for terror funding and money laundering. He suggested that implementing regulations could help reduce these risks. This includes creating a licensing system for crypto traders, which would require them to report transaction details to law enforcement. He emphasized the importance of establishing a regulatory framework for cryptocurrency in the country.