After the attack on Israel by the Palestinian terrorist organization Hamas, the role of cryptocurrency in Terror funding has come under fresh scrutiny. Israel has seized several crypto accounts it says are linked to Hamas. US lawmakers have urged the government to ban using cryptocurrencies by Hamas and its allies. Cryptocurrency is a way to get money globally. Today, we will learn about the role of crypto in this article.
Why Is Crypto Used In Illicit Finance?
Anyone can set up a cryptocurrency wallet address without going through any bank. In this, the name and address are pseudonymous. You will find many digital wallets online where you can create your wallet. You must download and save the apps on your mobile port. You download the app, log in with your details and then follow the on-screen instructions to transfer your cryptocurrency to this wallet.
Blockchain Technology That Forms The Basis
Blockchain is a series of blocks; information is stored in these blocks. Blockchain aims to fix digital documents at a specific time, making it impossible to backdate or tamper with them. The Financial Action Task Force (FATF), the global body responsible for combating money laundering and terrorist financing, has warned that crypto assets “risk becoming a haven for criminals and terrorists’ financial transactions”.
Can’t Crypto Be Tracked?
It can be done, but not always. Blockchains like Bitcoin and Ethereum create a permanent public record of transactions. This means there is a record of the movement of funds in and out of the wallet address. It is difficult for an outsider to identify transactions on the Blockchain, but blockchain analytics firms have tools to track funds.
How Much Is Crypto Used In Terrorist Financing?
No one knows for sure. Terrorist groups are also educated and equipped with modern technologies like others. They use various methods to transfer funds, including cash, banks, shell companies, donations, and informal financial networks. Experts say crypto is a small part.
According to a Bloomberg report, a UN official said in 2022 that 5% of terrorist attacks were believed to be financed by crypto a few years ago, but this could go up to 20%. The FATF said this year that crypto presents an “increasing terrorist financing risk” but that most terrorist financing still uses regular money. Crypto researchers Chainalysis noted in a blog that when illicit finance flows are identified in a crypto firm, it does not mean all flows to that firm are illegal. Chainalysis said terrorist financing “represents less than 1% of the entire crypto market captured by illicit activity.”
What Are The Laws Regarding Cryptocurrency In India?
Any central authority does not regulate cryptocurrencies in India. No rules or guidelines are set for the settlement of any dispute in cryptocurrency. Therefore, trading in cryptocurrency is done at the investors’ risk. Based on Reserve Bank of India Governor Shaktikanta Das’s statements, the country’s Finance Minister Nirmala Sitharaman, and other government-responsible people, we have concluded that cryptocurrency is illegal in India. Still, there is no definite ban on it in India. Are.
Bank Indonesia Has Expressed Suspicion Of Crypto Currency Being Involved In Terror Funding.
Bank Indonesia’s Payment System Blueprint 2025 confirms the fear that cryptocurrency can be used for money laundering and terrorist activities. This blueprint states that there is a strong need for legislation to make transactions through crypto secure. Indonesia currently lacks such cyber laws.
There Is A Need For Concrete Law For Cryptocurrency In India Too
There is a lack of concrete legislation to regulate crypto in India. The country’s security agencies have also started finding evidence of using cryptocurrency in terror funding. Amidst the increasing trend of crypto worldwide, there is a need to ponder why crypto is increasing among terrorist organizations.
