Contrary to popular belief, cryptocurrency does not play a dominant role in funding Hamas, as indicated by the U.S. Treasury.
The Role of Cryptocurrency in Hamas’ Funding
When it comes to funding for Hamas, many might think that cryptocurrencies are key players. However, according to the U.S. Treasury, crypto assets only form a minuscule portion.
Under Secretary of the Treasury for Terrorism and Financial Intelligence, Sigal Mandelker, recently stated that:
“While we have seen the likes of al-Qaeda, ISIS, and Hamas make some use of cryptocurrencies, it’s a small percentage of their overall funding.”
The Common Misconception About crypto
Despite being a hot topic in the financial world, many people may misconceive the role of digital currencies such as Bitcoin in financing illicit activities, mainly due to their reputed anonymity.
- It is important to dispel the notion that digital currencies are mostly used for illicit activities. In reality, just as with traditional financial systems, illegal uses are the exception, not the rule.
- Regulators worldwide are vigilantly monitoring the use of cryptocurrencies to ensure it doesn’t provide a loophole for illegal activities.
Evidence Shows Limited Use
The Quantum computing solution by Elliptic, revealed that only 0.2% of the entire Bitcoin transactions from 2013 to 2019 were linked to illegal activities.
Suggestive of this fact, Mandelker said:
“There are many ways we can catch those using cryptocurrencies for illicit purposes. Crypto is not a silver bullet for terrorists.”
The Necessary Action: Enhanced Legislation
Enhanced legislation and advanced tech could be instrumental in reducing illicit crypto activities further. As the authorities grow more sophisticated in tracking and tracing digital currency transactions, it will only become harder for criminals and terrorists to use them nefariously.
