Lawmakers Express Concern Over Crypto-Financed Terrorism
Sen. Elizabeth Warren and over a hundred other lawmakers have raised concerns about how Hamas raised millions of dollars through cryptocurrency. They are seeking answers from the Biden administration in response to a report from the Wall Street Journal that revealed the use of crypto as a financing tool by militant groups prior to attacks in Israel. The lawmakers sent a letter to the Treasury Department and the White House, urging swift action to address crypto illicit finance risks and protect national security.
Cracking Down on Crypto Money Laundering
One measure being considered is Sen. Warren’s bill to curb the use of crypto for money laundering and sanctions evasion. Senate Banking Committee Chair Sherrod Brown, who plays a key role in the bill’s progress, has shown hesitancy towards it but signed the letter nonetheless. The letter was also supported by crypto-friendly lawmakers such as Rep. Jake Auchincloss and Josh Gottheimer.
The lawmakers are specifically seeking information on the steps taken by the Biden administration to combat the use of crypto by terrorist organizations, including accounts held at Binance and the use of Tether. They have requested a response by October 31.
Fresh Sanctions Target Hamas
In response, the Treasury Department announced new sanctions against a Gaza-based virtual currency exchange and its operator. The Office of Foreign Assets Control imposed sanctions on ten Hamas terrorist groups and individuals in Gaza, Sudan, Turkey, Algeria, and Qatar. The move comes after Israel’s National Bureau for Counter Terrorist Financing seized virtual currency wallets linked to a Hamas fundraising campaign.
Crypto Industry Responds
Ji Kim, head of policy at the Crypto Council for Innovation, emphasized that there are clear anti-money laundering rules for US exchanges. Kim stated that the rest of the world should follow suit and urged policymakers to work with the industry to combat illicit activity. The crypto industry aims to be a helpful partner in protecting national security.
Hot Take: Addressing Crypto’s Role in Terrorism Financing
Lawmakers, led by Sen. Elizabeth Warren, have expressed concerns about the use of cryptocurrency for financing terrorism. The recent report on Hamas raising millions through crypto has prompted calls for action from the Biden administration. While lawmakers consider legislative proposals to mitigate crypto money laundering and illicit finance risks, there is a push for swift and effective measures to prevent another tragedy. The Treasury Department has responded with fresh sanctions against Hamas and other groups involved in terrorist financing. The crypto industry has also emphasized its commitment to working with policymakers to combat illicit activity and protect national security.
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