Bosaso, Somalia – Somalia’s Puntland regional administration has issued a stark warning that ISIS is exploiting cryptocurrency to channel funds into its terror network, fueling extremist activities across Africa and potentially beyond.
Abdirahman Dhabancad, Puntland’s representative for political affairs and international relations, revealed in an interview with Sky News that the region has obtained credible intelligence indicating the extremist group’s reliance on digital currencies. According to him, these financial flows are increasingly difficult to track through conventional counterterrorism monitoring systems.
“We have clear evidence showing ISIS is turning to cryptocurrency as a new financial lifeline. This poses a serious challenge not just for Somalia or Africa, but for global security,” Dhabancad stated.
The revelation comes amid renewed scrutiny of ISIS-Somalia’s international links. Intelligence reports have tied the group to the devastating Kabul airport bombing on August 26, 2021, which killed 13 U.S. service members—including 11 Marines and a Navy corpsman—alongside at least 90 Afghan civilians. The attack underscored the global reach of ISIS affiliates and their capacity to strike far beyond their local bases.
Experts warn that digital currencies have become an attractive tool for terror groups due to their relative anonymity, decentralized networks, and weak regulatory oversight in many regions.
In Somalia, where ISIS maintains a small but resilient presence in Puntland’s mountainous terrain, authorities fear cryptocurrency could strengthen the group’s ability to recruit, arm, and expand.
Regional security officials are now urging international cooperation to clamp down on illicit cryptocurrency transactions. Puntland leaders emphasized that without stronger global regulations and advanced tracking systems, terror financiers could continue exploiting the loopholes of the digital economy.
The Puntland State House said it remains committed to countering terrorism financing networks and called on allies in the Horn of Africa, as well as Western partners, to step up intelligence-sharing and technical support.
This disclosure marks one of the clearest acknowledgments by Somali authorities of cryptocurrency’s role in terrorism financing—an evolving threat that analysts say may reshape counterterrorism strategies in Africa and beyond.
