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Contrary to the belief purported by anti-crypto media and personalities, the role of cryptocurrency in financing terrorist activities is insignificant and negligible. This is according to a recent <a href="https://www.chainalysis.com/blog/cryptocurrency-terrorism-financing-accuracy-check/" rel="noopener noreferrer nofollow">report</a> from blockchain analytical platform Chainalysis.
Chainalysis reports following after Hamas’s terrifying attack on Israel, reawakening questions and concerns on the significance of digital currencies in funding illicit activities including terrorism. As per the October 18 reports, the claims that crypto plays a major role in financing terrorism were based on incorrect analyses and metrics.&nbsp;
In order to measure the volume of transactions tied to terrorism-related funds the role of service providers cannot be overlooked.
<h2 id="b-crypto-not-a-solution-for-financing-terrorism-b">Crypto not a Solution for Financing Terrorism</h2>
Chainalysis argues that the recent estimates quoted as processed through suspected service providers in relation to the attack on Israel include funds not explicitly linked to financing terrorism adding that the majority of the funds were unrelated to terrorism. Therefore, tracking funds&nbsp; via intermediary service providers could lead to inaccurate conclusions.
<h2 id="b-crypto-transparency-feature-makes-it-less-suitable-for-terrorist-activities-b">Crypto Transparency Feature Makes it Less Suitable for Terrorist Activities</h2>
Interestingly the report notes that crypto’s transparency in blockchain makes it less desirable as a channel for transactions as government agencies and blockchain analytical firms can collaborate to disrupt the flow of such transactions. Although terrorist groups raise, store, and transfer funds with cryptocurrency, it noted that terrorism financing only represents a minute portion of the cryptocurrency transaction volume that is illegal.
As such, traditional platforms including financial institutions, Hawala and Shella companies remain the avenue through which the majority of these illegal transactions are carried out.&nbsp;&nbsp;&nbsp;
<h2 id="b-authorities-freeze-terrorism-related-crypto-wallets-b">Authorities Freeze Terrorism-Related Crypto Wallets&nbsp;</h2>
Recall that in compliance with Israeli law enforcement requests, <a href="https://thecoinrise.com/binance-freezes-hamas-accounts-in-compliance-with-israeli-law-enforcement/" rel="noopener noreferrer nofollow">Binance have frozen accounts linked Hamas</a>, a terrorist organization located in the Gaza Strip. 
The move signals the exchange’s dedication to preventing the misuse of its platform. Also in 2022 <a href="https://thecoinrise.com/israel-seizes-hamas-linked-crypto-accounts-involved-in-terrorism-funding/" rel="noopener noreferrer nofollow">Israeli officials seized 30 crypto wallets</a> from 12 exchange accounts involved in terrorism funding related to Hamas.
Undoubtedly the use of crypto for philanthropy is not limited to just terrorism funding. Supporters of the <a href="https://thecoinrise.com/prime-minister-of-canada-invokes-emergencies-act-targeting-crypto-crowdfunding-platforms/" rel="noopener noreferrer nofollow">Freedom Convoy in Canada </a>and <a href="https://thecoinrise.com/ukraine-raises-funds-worth-more-than-8m-through-crypto-donation/" rel="noopener noreferrer nofollow">Ukraine’s anti-Russian opposition group received millions</a> of dollars in crypto donations in the first two months of 2022.
The post <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com/cryptocurrency-not-a-major-tool-for-financing-terrorism-chainalysis/">Cryptocurrency Not a Major Tool for Financing Terrorism: Chainalysis</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Cryptocurrency Not a Major Tool for Financing Terrorism: Chainalysis

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