Expert for the defense reported to Congress that cryptocurrencies are not suitable for the financing of terrorism


Expert for the defense reported to Congress that cryptocurrencies are not suitable for the financing of terrorism

According to Yai’s Fanusa, the senior member of the Foundation for defense of democracies dealing with sanctions and criminal Finance, the terrorist organization still prefer cash. Speaking to members of Congress, Fanouse said that, despite the concerted efforts of terrorist networks and failed to use cryptocurrencies to Finance its activities.

The author of the Forbes Ted Knutson, referring to the speech of Fanusa in Congress, stressed that the jihadists to Fund themselves using virtual currencies, guaranteed a big headache. Being a capital-intensive phenomenon requiring anonymity, bitcoin, and other cryptocurrencies seem the best option. Unfortunately for them, the jihadists do not “work” in countries with highly developed technology sector. Attempt to convert digital coins into Fiat money could mean for them the perilous journey for a few miles to places where the intelligence of the enemy has more chances of success to detect the presence of terrorists. So while “al— Qaeda”, ISIS, Boko Haram and similar groups are loyal to the cache.

If Fanusa rights, the critics who believe cryptocurrencies means of financing terrorism are dead wrong. In 2017, the Coin Center Director Jerry Britto reported that, according to the Center for a new American security (CNAS), for the period between 2015 and 2017 in terrorist activities has been used only eight bitcoins.

According to the CNAS report, released at the time, there are only certain evidence of the use of crypto-currencies in financing terrorism. Moreover, the report revealed that jihadists may use traditional financial system, so they have no motives to replace the cache cryptocurrencies.

The application of the law on verification of clients and to combating money laundering make it even more difficult terrorists access to the cryptocurrency. In addition, government agencies have begun to track transactions on the most popular blockchains.

Nevertheless, Fanusa does not believe that the jihadists do not follow the virtual currency. Many of the websites that disseminate radical propaganda, post the addresses of cryptocurrency wallets. Thus, even if terrorists can’t use digital coins to sponsor acts of terror, they are able to apply them in outreach activities and recruitment of volunteers in the network.

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