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​Cryptocurrency and Financing of Terrorism .. Know the whole truth

2019-04-02 01:30 pm | Resource: Crypto Section | No Views : 304

​Cryptocurrency and Financing of Terrorism .. Know the whole truth Cryptocurrency has been associated with the financing of terrorist organizations in recent times, a lot of news and reports indicate that.
Cryptocurrency is a kind of privacy and security. No one will be able to easily identify these funds in what you have disbursed or supported by someone, which has increased the likelihood that it will be the best way to transfer money to terrorist organizations all over the world and possibly money laundering. On this matter and its validity.

Foundation RAND: Cryptocurrency is not suitable for terrorist groups

​Cryptocurrency and Financing of Terrorism .. Know the whole truth
The US-based non-profit RAND Foundation said in a recent report that electronic currencies are not suited to the needs of terrorist groups.
The report, called "Terrorist Use of Coded Currency: Technical and Regulatory Obstacles and Future Threats," focused on two main angles: the first is how terrorists use electronic currency in their current state, and the second is how they can use it in the future as the industry evolves.
The authors believe that Cryptocurrency currently poses no major threat as a means of financing terrorism. However, if electronic currencies begin to provide anonymity and improve security, coupled with the lack of relevant state regulations, the risk of their potential use by terrorists will increase.
The report pointed out that although electronic currencies offer anonymous, secure and ready-to-finance flows, there is little evidence that terrorist organizations such as Da'ash, Hezbollah or other terrorist groups have relied on this type of money.
The report evaluated a range of useful Cryptocurrency properties and their weight against a list of five financial activities common to terrorist groups. These currency characteristics include concealment, ease of use, security, acceptability, reliability and size.
Based on the assessment, it was found that no single digital currency was currently capable of meeting all the financial needs of terrorist organizations. The report uses examples from Bitcoin (BTC), and Zcash (ZEC) to illustrate its state.

Bitcoin fails to finance terrorism for this reason

Bitcoin fails to finance terrorism for this reason
Although Bitcoin (BTC), the world's largest digital currency, is the world's first and meets the terms of acceptance and ease of use, the concealment of relative identity is not large enough for terrorist groups, which keep fundraising costs and operational costs entirely unknown.
The BTC is therefore far from helping terrorist groups.

Zcash fails to finance terrorism despite privacy

Zcash fails to finance terrorism despite privacy
On the other hand, while Cryptocurrency, such as Zcash, does not disclose its identity by providing a higher degree of privacy and allowing the transfer of Cryptocurrency without an Internet connection, it does not meet the admission requirements because it does not contain a huge user base like Bitcoin.

The future may watch terrorist financing using Cryptocurrency

The future may watch terrorist financing using Cryptocurrency
However, the RAND report did not rule out the future use of electronic currency by terrorist organizations. He concluded by saying:
"If a single digital currency appears to provide widespread adoption, better concealment, improved security, and subject to rules of laxity or inconsistent regulations, the potential benefit of this currency as well as its potential use by terrorist organizations will increase".
In fact, the Palestinian Hamas movement, based in the Gaza Strip, is already accepting donations through Bitcoin, and this has appeared in the past two months.
The report also pointed to several factors that may discourage terrorist organizations from using Cryptocurrency, including infighting within the e-currency community, and stronger law enforcement procedures such as anonymity for currency transactions.
The US House of Representatives passed a bill that would create a special working group in the area of ​​Cryptocurrency to combat the terrorist use of these currencies, in September 2018. It included a reward policy to help regulators provide information, "leading to convictions for the use of terrorists for these currencies already".

Bitcoin and the Dark Internet

Bitcoin and the Dark Internet
In 2018 Bitcoin (BTC), which was sent to hidden network markets in the dark Internet, increased by more than 70%. Chain Analysis confirmed in its previous report that the activity of the dark internet is not affected by Bitcoin price, This is a digital currency.

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