The legitimacy of crypto has been time and again questioned due to its involvement in illicit activities. The looming concern has again surfaced with a US senator posing questions to the secretary of treasury about how the country is planning to combat digital asset transactions used in terrorist activities.
Sherrod Brown raises questions on crypto’s involvement in terrorist activities
Senator Sherrod Brown questioned Janet Yellen, the secretary of the Treasury, on whether Congress needed more power to stop terrorists using digital assets. The US currently incorporates measures to detect and subsequently stop illicit users from buying, selling, or transacting in weapons or any questionable activities. However, Brown questions that most of these date back to the post-9/11 incident. As the illegal use of crypto assets increases, America now grapples with the question of how to update its methods.
Brown in his cautioned questions tried to shed light on the fact that “as terrorists continue to find loopholes” in the system, should the laws and procedures also innovate accordingly?
In response to these questions, Janet Yellen, Secretary of the Treasury, said that the department has identified certain loopholes in the current system. These drawbacks make the system not entirely equipped to deal with the situation. She added that the treasuries department has also composed a list of suggestions that could result in strengthened surveillance if implemented in the future.
Growing use of crypto for illicit activities
The question of crypto’s involvement in terrorist activities is not new. However, it has recently again picked up pace with the conflict between Israel and Palestine. According to a Reuters report, after a fatal incident in Israel by the Palestinian militant group Hamas, the role that cryptocurrency plays in supporting terrorists and extremist organizations has come under closer examination.
The report highlights that Israel claims to have confiscated cryptocurrency accounts connected to Hamas. Lawmakers in the United States have called on the government to take action against Hamas and its affiliates’ use of cryptocurrency. However, cryptocurrencies are only one method used by violent militant groups and organizations labeled as terrorists to get and spend money.
The biggest argument given by many in context to crypto’s use for illicit purchases is that it requires no digital footprints and is anonymous.
In the wake of the increasing use of virtual assets in terrorist activities, the US government is trying to tighten its regulations. Previously, a group of nonpartisan US senators unveiled a new law that targets digital assets used in terrorist operations, marking a significant step to prevent the use of cryptocurrencies in financing terrorist activities.
