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By: www.ProfitableInvestingTips.com
One reason that governments want to regulate
cryptocurrencies is their use by terrorists to finance
their operations. Crypto is not as good a way to hide
money transfers as some thought. However, it works
well enough that criminal enterprises and terrorists
use it with some degree of success.
The recent Hamas attack on Israel brought this thought
to mind. However, this issue has been on the minds of
those responsible for fighting terrorism for years. Does
crypto finance terrorism and, if so, how does that
work?
How Terrorists Use Crypto
The Rand Corporation published a report on terrorist
use of cryptocurrencies. The folks who are tasked
with fighting terrorism track the movement of money.
These operations cost money and by identifying
sources of funding, it is often possible to stop terrorist
attacks and even track down terrorists.
As such operations in the traditional banking sector
have become more and more efficient, there has been
the risk of terrorists moving into crypto to accomplish
their money transfers and funding. A problem that
terrorists confront is the same one that plagues crypto
worldwide. It is easy to move crypto around but not
always easy to convert it into the local currency. And as
other folks who have tried to hide crypto assets have
learned, crypto tracing is effective in eventually
finding assets and their owners
The Ideal Token For Terrorists
The ideal token for terrorist operations is one with
widescale acceptance and convertibility into dollars,
euros, yen, etc. It is also one with little or no regulation
and oversight.
Tokens with enhanced privacy features could make
tracing by law enforcement more difficult. Exchanges
in the US, Europe, China and elsewhere make pure
anonymity hard to achieve. Decentralized exchanges
in other nations with poor regulatory oversight make
the work of terrorists easier. Darknet markets have
become hot spots for crypto use for stolen identities
and illicit drugs.
DeFi as a Terrorist Tool
Elliptic reports that terrorist organizations are utilizing
the entire crypto space to raise, invest, and use money
for their operations. A reasonable estimate is that
about a fifth of terrorist financing involves crypto
today.
They say that the Islamic State, Hamas’s al-Qassam
Brigades, and al-Qaeda are all involved in these efforts.
They seek to get around sanctions, extort, engage in
cybercrime, and transfer assets. In addition, they are
engaged in crypto mining public fundraising,
investing, and decentralized finance businesses.
Which Crypto Assets and Businesses Are Involved
in Terrorist Financing?
Elliptic says that more than thirty crypto assets are used
for terrorist purposes. These include stablecoins like
Tether and DeFi governance tokens. It turns out that
they are using Bitcoin less and less as tracing of these
tokens has gotten more efficient. To the extent that
these terrorist entities engage in otherwise legal crypto
business, it becomes harder to track assets going for
nefarious purposes.
Terrorist Attacks as Fundraisers
A particularly disturbing aspect of the recent Hamas
attack in Israel was the professional video coverage of
the slaughter and hostage taking of civilians. This
certainly was meant to instill terror in the Israeli
population. However, it is likely also meant to be used
to raise money for their operations.
Elliptic says that wallets associated with Palestinian
Islamic Jihad (PIJ) receive more crypto donations
whenever there are terrorist attacks on the West Bank
or out of Gaza. As the US, EU, Israel, and others get
better at tracking these crypto transfers, terrorists have
moved to other tokens exchanges and especially those
with stronger privacy features.
For more insights and useful information about
investments and investing, visit
www.ProfitableInvestingTips.com.

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Does Crypto Finance Terrorism?

  • 2. One reason that governments want to regulate cryptocurrencies is their use by terrorists to finance their operations. Crypto is not as good a way to hide money transfers as some thought. However, it works well enough that criminal enterprises and terrorists use it with some degree of success.
  • 3. The recent Hamas attack on Israel brought this thought to mind. However, this issue has been on the minds of those responsible for fighting terrorism for years. Does crypto finance terrorism and, if so, how does that work?
  • 5. The Rand Corporation published a report on terrorist use of cryptocurrencies. The folks who are tasked with fighting terrorism track the movement of money. These operations cost money and by identifying sources of funding, it is often possible to stop terrorist attacks and even track down terrorists.
  • 6. As such operations in the traditional banking sector have become more and more efficient, there has been the risk of terrorists moving into crypto to accomplish their money transfers and funding. A problem that terrorists confront is the same one that plagues crypto worldwide. It is easy to move crypto around but not always easy to convert it into the local currency. And as other folks who have tried to hide crypto assets have learned, crypto tracing is effective in eventually finding assets and their owners
  • 7. The Ideal Token For Terrorists
  • 8. The ideal token for terrorist operations is one with widescale acceptance and convertibility into dollars, euros, yen, etc. It is also one with little or no regulation and oversight.
  • 9. Tokens with enhanced privacy features could make tracing by law enforcement more difficult. Exchanges in the US, Europe, China and elsewhere make pure anonymity hard to achieve. Decentralized exchanges in other nations with poor regulatory oversight make the work of terrorists easier. Darknet markets have become hot spots for crypto use for stolen identities and illicit drugs.
  • 10.
  • 11. DeFi as a Terrorist Tool
  • 12. Elliptic reports that terrorist organizations are utilizing the entire crypto space to raise, invest, and use money for their operations. A reasonable estimate is that about a fifth of terrorist financing involves crypto today.
  • 13. They say that the Islamic State, Hamas’s al-Qassam Brigades, and al-Qaeda are all involved in these efforts. They seek to get around sanctions, extort, engage in cybercrime, and transfer assets. In addition, they are engaged in crypto mining public fundraising, investing, and decentralized finance businesses.
  • 14. Which Crypto Assets and Businesses Are Involved in Terrorist Financing?
  • 15. Elliptic says that more than thirty crypto assets are used for terrorist purposes. These include stablecoins like Tether and DeFi governance tokens. It turns out that they are using Bitcoin less and less as tracing of these tokens has gotten more efficient. To the extent that these terrorist entities engage in otherwise legal crypto business, it becomes harder to track assets going for nefarious purposes.
  • 16. Terrorist Attacks as Fundraisers
  • 17. A particularly disturbing aspect of the recent Hamas attack in Israel was the professional video coverage of the slaughter and hostage taking of civilians. This certainly was meant to instill terror in the Israeli population. However, it is likely also meant to be used to raise money for their operations.
  • 18. Elliptic says that wallets associated with Palestinian Islamic Jihad (PIJ) receive more crypto donations whenever there are terrorist attacks on the West Bank or out of Gaza. As the US, EU, Israel, and others get better at tracking these crypto transfers, terrorists have moved to other tokens exchanges and especially those with stronger privacy features.
  • 19. For more insights and useful information about investments and investing, visit www.ProfitableInvestingTips.com.