SRINAGAR/NEW DELHI: Security agencies have flagged a sophisticated “crypto hawala” network that is allegedly being used to channel foreign funds into Jammu and Kashmir by bypassing the country’s financial safeguards, officials said on Sunday.
According to officials, the untraceable flow of money through cryptocurrencies has raised serious concerns that these funds are being used to support terror-related activities. The development has put security agencies on high alert, amid fears that such funding is aimed at reviving separatist elements and reigniting anti-national narratives in the Union Territory.
Officials said this new method could give fresh momentum to groups whose influence had largely been curbed following sustained action by police and central agencies in recent years.
Similar to the traditional hawala system, which relies on informal and non-banking channels, the digital version uses the anonymity of largely unregulated cryptocurrencies. This allows operators to erase transaction trails while injecting money into the local economy without detection.
Security agencies are closely monitoring the situation, warning that “crypto hawala” poses a new and complex challenge to counter-terror financing efforts in the region.
