Terror funding still relies on traditional financial systems like cash, not crypto: Coinbase Terror funding still relies on traditional financial systems like cash, not crypto: Coinbase
Coinbase argued that blockchain is a tool that could be used to fight terrorism funding.
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Updated: Oct. 19, 2023 at 2:20 am UTC
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U.S. cryptocurrency exchange Coinbase wrote that the “overwhelming majority of terrorist funding still relies on traditional financial systems, like cash,” in an Oct. 17 blog post.
The exchange made this statement in response to claims that the crypto industry actively facilitated transactions for malicious players. In the past week, heightened concerns emerged amid recent events, particularly Palestine’s Hamas group’s actions in Israel. Reports suggested that Hamas had accumulated a significant sum in crypto to fund their unanticipated attack.
While crypto stakeholders, including Tether (USDT) and Binance, have touted their roles in helping the authorities rein in the illegal use of crypto for terrorism financing, Coinbase argued that crypto’s immutable ledger system made these types of transactions easier to trace, unlike cash payments, which are harder to track between institutions and geographies.
Paul Grewal, Coinbase’s chief legal officer, said:
“It’s disappointing that some would capitalize on a tragedy to scapegoat crypto while ignoring significant terror finance elsewhere.”
Coinbase furthered that blockchain is a tool that could be used to fight terrorism funding, adding that:
“No currency of any type – whether it’s fiat, gold, or crypto – should ever be used to support Hamas or any other terrorist organizations. “
The crypto exchange concluded the post by advising the government to create clear rules to keep the industry in the United States and other regulated jurisdictions. It said:
“Reports of Hamas funding linked to digital assets are connected to offshore entities not subject to US laws, including anti-money laundering and sanctions regulations, making it easier for them to engage in such conduct.”
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
