Cryptocurrency is a great way for investors to avail of fresh opportunities in addition to decent gains. But, apart from attracting the attention of investors worldwide, this market has become a favorite spot for global terrorism. Due to the unregulated nature of this market, terrorists find it super-easy to carry out their illicit activities. Read more about interesting crypto news in TRUSTPEDIA IO.
The aspects of terror funding are becoming quite popular. With the help of crypto, sending funds to terrorist groups is not a tough task. With the development of different strategies like counterterrorism financing, terrorists are shifting towards Crypto. But, the recent crash in the market and the downfall of the Crypto industry as a whole is proving to be bad information for global terrorism!
Terror Funding Through Crypto
In a report submitted by Israeli AML, a huge amount of funds are received by the terrorist groups in the period of 2020-2021. Among these funds, coins like Ethereum, ERC-20 token, and XRP are present. Another report by the UN’s Counter-Terrorism group shows that, with the advent of the pandemic, transferring funds to terrorist groups has become easier through Crypto. The report also states that the terrorist group of Al-Qaeda managed to raise Crypto funds via Facebook and Telegram.
Also, the Global Crypto Adoption Index by Chainalysis points out the fact that Afghanistan holds the 20th position among 154 nations. Another report by Rand.org says that terrorist groups have no interest in the other features of Crypto. But, they use it for some definite financial uses. Though they were slow with the entire concept, now these terror groups are using it more than ever! They are accepting it in a huge amount as it lacks regulation, better security, and anonymity.
Crypto Meltdown Is Causing Tension Among The Terrorist Groups
The downfall in the Crypto space has been a shock to the entire community. Because giant Crypto firms like FTX have been going through a crash and many coins are showing poor performance. This has sent a shockwave across the industry. With this meltdown, the total value of the digital currencies in the market has gone below 1 Trillion USD.
Apart from the traders, another group for whom this is bad information is the terrorist groups. The rates of major influential coins like BTC, ETH, and others have faced a downfall.
But, India has been opposing Crypto for a long time now. Also, crypto involves borderless transactions and is full of risks. So, this market needs a certain global consensus according to India. Also, the Finance Minister of the nation says that Crypto is borderless, so they need to be regulated through global collaboration.
Ways In Which Everyone Is Fighting Against Cryptocurrency Terror Funding
An international body is working to combat the issues of anti-money laundering and terror funding. They do this by providing a proper definition of digital assets or services and applying the guidelines to them. Also, Coindesk.com shares that most Cryptocurrency service providers validate their customers’ identity. This is the case for over half of jurisdictions around the globe.
This fact helps the terrorist groups to receive funds through Crypto and continue their illicit activities. Most firms do not ask their users to validate their identity or any such important information. It helps terror groups to receive funds with an anonymous identity.
India had been the host of the third version of the NMFT conference and it was held in the capital city, New Delhi. Here, the government will talk about all the important issues including digital assets and terror funding, usage of the dark web, and many other aspects. Representatives of more than 75 nations attended the event.
The aspect of terror funding is a very serious issue in this market. Due to fewer rules and requirements, this industry is an easy target for such illegal groups. They can receive funds at ease and can raise funds from digital outlets.
India and many other nations are raising their concerns about this issue. But, with the current meltdown of the market, terror funding is at stake, which is a pretty bad condition for such terrorist groups.