The US Treasury Deputy Secretary Dismisses Crypto as a Major Source of Terror Group Financing
The Deputy Secretary of the US Treasury, Wally Adeyemo, has stated that cryptocurrencies are not the primary source of financing for terror groups. Speaking at an event in London, Adeyemo acknowledged that terrorist financing methods have evolved, and crypto provides a new channel for moving funds. However, he emphasized that crypto is currently not a significant funding source for these groups. Adeyemo urged the digital asset industry to collaborate with authorities to prevent bad actors from exploiting cryptocurrencies for illegal activities. He also highlighted Section 311 of the USA PATRIOT Act as a measure to tackle terror financing through crypto.
Preventing Crypto from Becoming a Funding Source for Terrorism
Adeyemo stressed that terrorist groups will exploit any new technology to move money illicitly, and it is crucial to take action now to prevent crypto from becoming a primary funding method in the future. He mentioned the use of mixers, devices that disguise the origins and destinations of funds, as an example. Adeyemo emphasized the need to crack down on mixers used by terrorists or others to hide their money. Recently, FinCEN proposed record-keeping and reporting requirements for transactions involving crypto mixing services.
No Evidence Supporting Claims of Crypto Funding for Terror Groups
Contrary to rumors suggesting that militant group Hamas raised millions through crypto fundraising campaigns, blockchain analytics firm Elliptic has found no data supporting the claim that cryptocurrencies are a significant source of funding for Hamas or other terror organizations.
Hot Take: Crypto’s Limited Role in Terror Financing
The US Treasury Deputy Secretary’s remarks clarify that cryptocurrencies currently play a minor role in financing terror groups. While acknowledging the potential of crypto as a new channel for moving funds, Adeyemo emphasizes the need for collaboration between the crypto industry and authorities to prevent illegal activities. By implementing measures like Section 311 of the USA PATRIOT Act and cracking down on mixers used by terrorists, efforts can be made to ensure that crypto does not become a primary funding source for terrorism in the future.
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