India Flags ‘Crypto Hawala’ Networks Fueling Terror Financing in Kashmir
Indian security agencies warn of a growing threat as cryptocurrency hawala networks facilitate terror financing in Jammu and Kashmir. These networks exploit decentralized tools to bypass financial oversight, moving foreign funds through private wallets, VPNs, and unregulated platforms.
Investigators highlight the use of mule accounts and peer-to-peer crypto traders to obscure transaction trails, enabling off-grid cash conversions across major Indian cities. The system mirrors traditional hawala operations but leverages crypto’s anonymity to evade detection.
Officials caution that such networks risk reviving dormant separatist structures in the region, underscoring gaps in global crypto regulation. The lack of centralized oversight allows foreign handlers to build resilient, decentralized financing channels.
