Cash is King for Terror Financing, Crypto Plays Negligible Role
Terrorism financing is primarily conducted in fiat, according to the latest findings from Chainalysis. This goes against the arguments often spouted by anti-crypto politicians and media regarding the role of cryptocurrencies in the activity.
On October 18, blockchain analytics firm Chainalysis released a report detailing the role of cryptocurrency in terrorism financing—and data shows that it is miniscule.
The report titled “Correcting the Record” aims to address inaccurate methodologies for estimating cryptocurrency’s role in terrorism financing.
Chainalysts stated it had “seen overstated metrics and flawed analyses of these terrorist groups’ use of cryptocurrency.”
Moreover, it noted that crypto plays a small role in terrorism financing. However, some groups like Hamas, Hezbollah, and Palestinian Islamic Jihad do raise and transfer some funds using crypto.