Reportedly, cryptocurrency is a widely inefficient form of money for organizations associated with terrorism. Yet, one expert holds that the U.S. needs to take the necessary steps to prevent its potential adoption for illicit financing.
“Cold Hard Cash is Still King” For Terrorists
Speaking before Congress, the director of analysis for the Foundation For Defense of Democracies Center Yaya Fanusie, outlined that jihadists have found little to no success in cryptocurrency fundraising.
As an example, the expert pointed out the Mujahideen Shura Council (MSC) – a terrorist group in Jerusalem which managed to raise as little as $500 in a few weeks back in 2016.
Cold hard cash is still king.[…] Crypto is a poor form of money for jihadists because they usually need to purchase goods with cash often in areas with unreliable technology infrastructure. – The expert said.
Interestingly enough, though, Fanusie pointed out anonymity as the main quality of cash.
Not So Serious
Fanusie’s claims are not the only ones which point towards the fact that cryptocurrencies aren’t the preferred means of financing for illicit activities.
A memorandum of the Center on Sanctions & Illicit Finance issued in January outlined that only a tiny 0.61% of the money entering cryptocurrencies are used against regulations.
On the other hand, a more recent report on Money Laundering and Terrorist Financing issued by the Financial Services and Treasury of Hong Kong outlined that cryptocurrencies do not compose a threat at the current time.
Nevertheless, prevention is absolutely the best form of defense and governments need to do what’s necessary to counter the potential for terrorist crypto fundraising.
By preparing now for terrorists’ increasing usage of cryptocurrencies, the U.S. can limit the ability to turn digital currency markets into a sanctuary for illicit finance. – Fanusie said.
What do you think of Yaya Fanuse’s statements? Let us know in the comments below!
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