Crypto funding for terrorism hasn't been successful thus far

09 Sep, 2018
by Fifi Arisandi
News
Crypto funding for terrorism hasn't been successful thus far

The US Congress subcommittee on Terrorism and Illicit Finance's discussion concluded that cryptocurrency is a poor form of money to fund terrorism activities. 

The hype of cryptocurrency and the increasing terrorism activities in the world today have concerned many parties about the possibilities of extremists' using the platform to fund their activities. 

In the efforts to monitor terrorism activities, the US Congress subcommitte on Terrorism and Illicit Finance held a discussion on various ways used by terrorist groups around the world to get financed. Among the discussed methods are the traditional financial institution, hawala exchange system and cryptocurrencies, as reported by BTCNN

It appears that some attempts to use the crypto space to raise fund for their activities have been made by some terrorist groups, as mentioned by the director of analysis for the Foundation for Defense of Democracies (FDD) Center on Sanctions and Illicit Finance, Yaya Fanusie. Fortunately, the attempts have remained unsuccessful thus far. 

Several reasons are said to become the barriers for a successful attempt of terrorism-funding on the crypto space. The first is related to the location of the terrorist groups, which is usually in regions where cryptocurrency hasn't reached yet. Secondly, the fiat offers more anonymity compared to cryptocurrency's decentralized digital ledger, which is something that is highly-required by such groups. 

That being said, the crypto space still requires a close monitoring to obstruct the potential success of such activities; one of them is by improving the skill of relevant government bodies in cryptocurrency transactions analysis. Furthermore, he advised authorities to pay more attention to small crypto exchanges rather than the major ones that have already implemented stricter KYC policies. 

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