Terrorists Still Raise Money Through Crypto, But The Impact Is Limited
The role of cryptocurrency in Terrorism would be minuscule. This is not a way that is embraced by people to finance for terrorism. In this digital world, there are a lot of frauds happening, including money laundering, terrorist financing and breach of data and so on. The United States Treasury Secretary, Janet Yellen stated that cryptocurrencies is considered to be a tool to fund for terrorism. There is a key turn that is taken to fight against terrorism and this has raised many questions. The main question is how dangerous is it if the crypto is in the hands of terrorists to the society as well as the government and the other question that is on the rise is how much risk it poses to the cryptocurrency and block chain industries.
The evidences that are submitted in the recent times proven that the role of crypto currency in the increase of terrorism would be very minute. The cryptocurrency was being used in many of the terrorist financial activities. However, this was not the primary way to receive funds to the terrorist groups. This was stated by the director of Jeanette and Eli Reinhard Program on Counterterrorism and intelligence. Gina Pieters, who is working as the assistant professor in the Department of Economics in the University of Chicago stated that the cryptocurrency can be a tool. However, Yellen chose to say the words carefully. It was stated that this is not a major tool, but is growing. With the growth of cryptocurrency, it will be used in many of the criminal activities.
Dave Jevans, who is the CEO of the Cipher Trace, expressed few of the uneasiness about the treasury secretary words. If some of the great leaders would consider cryptocurrency to be associated with many illegitimate activities, then the regulators would impose stringent rules on the transactions that are carried out through cryptocurrency. By banning blanket cryptocurrency, it would prevent mass adoption and innovation in this arena. The issue must be raised and bring it to the notice of the people. The misuse of this currency would be considered as a geopolitical issue with many trying to avoid the sanctions imposed like in Iran, Russian and Venezuela. The help that is done to the terrorist groups through this cryptocurrency would be worrisome. Though, the financing through cryptocurrency is happening in small amounts and it is traced that out of 37.35 bitcoins, a mere of around 0.00324% is spent on the illegitimate activity. The US has seized the cryptocurrency accounts of three of the terrorist groups in the Middle East. It is the largest seizure of cryptocurrency accounts so far.
There are many Jihadi groups, which are using cryptocurrency for years. The MEMRI observed that there are a few groups who are discussing the usage of cryptocurrencies. The news related to Jihadis and cryptocurrency has led companies to shut the accounts. However, not all the cryptocurrency would address the financial needs of terrorists. However, the cryptocurrencies like bitcoins have improved usability and there is a little evidence gathered and found that there are a few terrorist groups who would use cryptocurrencies. It is essential for these groups to get money without letting the government know about it. The cryptocurrency is found to be the best way to move funds without physical transportation and much risk.