Crypto Becomes New Lifeline for Drug Dealers

Jalil Afridi

Washington, D.C.: In the shadowy underworld of South Asia’s narcotics trade, cryptocurrency has emerged as the preferred method of payment for heroin and hashish traffickers operating between Afghanistan and Pakistan. Sources within regional law enforcement and business communities confirm that crypto transactions are now widely used to evade detection, with Dubai playing a central role as the financial nucleus facilitating this new form of laundering.

With traditional banking systems increasingly monitored, dealers find blockchain-based currencies such as Bitcoin and Tether much more secure and untraceable. Afghan opium fields and Pakistani distribution networks, once reliant on hawala, have quickly adopted digital wallets to move millions across borders—beyond the reach of regulators.

Alarmingly, officials in both countries appear either unaware or complicit. In Pakistan, insiders claim that elements within the military and the civilian government are encouraging the growth of crypto. A new federal minister has reportedly been brought onboard to oversee crypto policy, while businessmen speculate that government officials may soon begin accepting bribes in digital currency.

A Lahore-based real estate tycoon told The Frontier Post, “Crypto will not only be the payment method for narcotics and bribes, but also for betting and online gambling, which is a rising underground market here.”

Estimates suggest over $20 billion enters Pakistan and Afghanistan annually through informal channels. With limited oversight, crypto now accelerates illicit flows tied to heroin cultivation, which according to recent reports, has surged significantly in Pakistan’s tribal belt and southwestern provinces.

The United Nations Office on Drugs and Crime (UNODC) recently warned that the global crypto market poses a “growing threat” to international anti-narcotics and anti-money laundering efforts, particularly in conflict zones where governance is weak.

Despite these risks, neither Islamabad nor Kabul has implemented effective crypto monitoring frameworks—leaving an unregulated digital frontier in the hands of criminals.