Kidnappers turning to cryptocurrency for ransom payments in Pakistan

Dubai: A Senate committee was informed that kidnappers in Pakistan are increasingly demanding ransom payments in cryptocurrency instead of cash, a trend raising alarm among lawmakers and regulators.

The revelation came during a meeting of the Senate Standing Committee on Finance, where Senator Mohsin Aziz said criminals are exploiting the unregulated nature of digital currencies to evade detection. The session, chaired by Senator Saleem Mandviwalla, reviewed the proposed “Virtual Asset Bill 2025” aimed at regulating the growing crypto sector, Geo TV reported.

Deputy Governor of the State Bank told the committee that cryptocurrency is not banned in Pakistan but operates in a legal “grey area.” Mandviwalla questioned how crypto dealings could be seen as grey when they were often routed through hawala and hundi networks, which are illegal. He also noted that Pakistan ranks eighth globally in cryptocurrency investment, underscoring the urgency of regulation.

Finance Secretary Imdadullah Bosal acknowledged the absence of any legal framework so far and said the government’s goal is to bring transparency and reduce the risk of money laundering through the new legislation. A Law Ministry consultant added that the bill would establish an independent regulatory board with experts in technology, finance, and compliance.

According to police data, Islamabad alone recorded at least 891 kidnapping cases last year including 483 teenage girls, 306 men and boys, and 150 women. Experts say kidnapping for ransom in Pakistan is driven by political, economic and social factors, worsened by weak law enforcement and low public awareness.

Globally, the first widely reported case of a crypto-ransom kidnapping occurred in January 2015, when abductors in Costa Rica demanded USD 500,000 worth of Bitcoin from a Canadian national.