Cryptocurrency is not yet justify the hopes of the terrorists, a report to the Committee of the U.S. Congress


Cryptocurrency is not yet justify the hopes of the terrorists, a report to the Committee of the U.S. Congress

The financing of terrorist activities has become one major scare that I remember the regulators around the world when it comes to cryptocurrencies. Yes, the terrorists really lay in the crypt of hope, but so far to Fund its own activities they do slightly better than nothing.

Al-Qaeda, ISIL and other terrorist groups have repeatedly tried to use bitcoin to Finance their operations, but this is not made up. Such conclusion contains in the report of the Committee of the U.S. house of representatives financial services. “Cash is still king,” said Yaya’s Fanusa, head of the analytical Department of the Center on sanctions and illicit Finance, who introduced the report of the Committee.

As an example of Fanusa operated various data sources, including specific examples. So, according to him, the Consultative meeting of Mujahideen operating in the Sinai Peninsula and the Gaza strip, in 2016, attempted to raise funds in the crypt with the help of online campaign. The result of the campaign was two donations total about $500.

Good old cash is still the most effective way of concealing the fact of payments and sources of funding, he added.

Terrorists are not able to fully take advantage of the new technologies inherent in the cryptocurrency industry, as they frequently do required transactions while in remote areas with an appropriate level of infrastructure development.

However, Fanusa believes that sooner or later the situation may change, and the terrorists will be much easier to raise funds in cryptocurrency and to use them for their needs. Until that happens, the US government should use your winnings in time.

“The United States can limit the abilities of terrorists in the future, taking the necessary steps to oust illegal financial transactions with the cryptocurrency market now,” he added.

In this regard, it is important to pay attention to the situation on the exchanges — if the big players such as Coinbase or Gemini, effectively impose standards of AML and KYC, rules unregulated exchanges are much more liberal that in the future is fraught with risks. Forgot Fanusa to go for a so-called anonymous coins, among which he mentioned Monero, zcash for and Dash.

Recall that the popularity of cryptocurrencies among the criminal element that does not infringe on American values and has access to all necessary infrastructure, is not so great as one might think.

So, in August, the representative of Management on struggle against drugs (DEA) of the United States Lilita Infante said that transactions related to criminal activities do not exceed 10% of the total.

Infante argues that criminals are often themselves victims of stereotypes about the anonymity of transactions in the blockchain, which are allegedly impossible to trace. The majority of transactions of interest to the DEA, carried out using bitcoin, but even if criminals are trying to confuse the issue using Monero or zcash for, track those, too. “We have ways”, — said the representative of Management.

“The blockchain is, in principle, gives us many ways to identify users, — said Infante. — So let them continue to pay in bitcoin”.

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