Kidnappers turning to cryptocurrency for ransom payments in Pakistan

A Senate committee was briefed that kidnappers in Pakistan are increasingly demanding ransom in cryptocurrency instead of traditional cash, a development that has raised serious concerns among lawmakers and regulators.

The revelation came during a session of the Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwalla. During the meeting, Senator Mohsin Aziz highlighted that criminals were exploiting the largely unregulated nature of digital currencies to avoid detection and bypass the banking system, Geo News reported.

Growing Concerns Over Crypto Misuse

The session also reviewed the proposed “Virtual Asset Bill 2025”, which aims to regulate Pakistan’s growing crypto sector.

Deputy Governor of the State Bank of Pakistan (SBP) told the committee that while cryptocurrency is not outright banned in the country, it continues to operate in a legal “grey area.”

Senator Mandviwalla questioned this characterization, pointing out that many crypto-related transactions are routed through hawala and hundi networks, which are already deemed illegal in Pakistan. He further noted that Pakistan ranks eighth globally in cryptocurrency investment, underscoring the urgent need for a regulatory framework.

Government’s Regulatory Push

Finance Secretary Imdadullah Bosal admitted that Pakistan currently lacks a legal framework to govern digital assets. He said the government’s main objective through the upcoming legislation is to ensure transparency and reduce money laundering risks.

A consultant from the Law Ministry added that the draft bill proposes the creation of an independent regulatory board, comprising experts in finance, compliance, and technology, to oversee the sector.

Rising Kidnapping Cases

Police statistics presented to the committee painted a grim picture. In Islamabad alone, at least 891 kidnapping cases were recorded last year:

• 483 teenage girls
• 306 men and boys
• 150 women

Experts say kidnapping-for-ransom in Pakistan is driven by political, economic, and social factors, and is further worsened by weak law enforcement and low public awareness.

Global Precedent

Pakistan is not alone in facing this challenge. The first widely reported case of a crypto ransom demand dates back to January 2015 in Costa Rica, when abductors demanded USD 500,000 in Bitcoin from a Canadian national.

The Senate committee concluded that without proper oversight, Pakistan risks both an increase in crypto-related crimes and the misuse of digital assets for illegal transactions.