The U.S. Treasury Department Imposes Sanctions on Digital Asset Exchange Linked to Hamas
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions on Buy Cash, a digital asset exchange located in Gaza that is allegedly used by Hamas for terror financing. The OFAC’s directive includes sanctions on ten key Hamas members and financial cooperators across Algeria, Sudan, Turkey, and Qatar. These measures are part of the authorities’ efforts to prevent illicit funding via cryptocurrencies.
In September 2019, Buy Cash’s Bitcoin wallet received a Bitcoin transfer equivalent to over $2,000. The transfer was facilitated by a Türkiye-based money services business operator and al-Qa’ida affiliate.
OFAC press statement
This move challenges the common belief that cryptocurrencies are a perfect tool for money laundering and terror financing. The OFAC’s actions follow a letter signed by 104 U.S. Senators and House members who called for legislation to crack down on cryptocurrencies in the Middle East amid tensions between Israel and Palestine.
Hot Take: Crypto Industry Advocates for Clear Policies Amid Regulatory Debate
While Congress may not finalize any rules in 2023, crypto proponents must continue to lobby for clear policies that foster innovation while isolating bad actors. Alexander Grieve, the government affairs lead at Paradigm, emphasized the need for practical and technical policy solutions within the industry. Until such solutions are developed, letters like the one from the U.S. Senators and House members will likely continue to be issued.
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