The Funding Crypto Terrorism More Than Quadrupled In The Last Few Years.

Growing evidence suggests that terrorism is financed increasingly with crypto, according to a United Nations official.

The prevalence of the funding crypto of terrorist activities may have quadrupled in the last few years, said Svetlana Martynova in a conference recently .

The senior legal officer of the Executive Directorate of the counter-Terrorism Committee of the UN estimated that 20% of the terrorist attacks have been criptofinanciados. Reported that these numbers seemed to have increased as intensified the scrutiny of the illicit use of criptomonedas.

The criminal activities associated with the criptomonedas reached a record high last year, according to the report most recent Chainalysis. The figure has almost doubled from 7.8 billion in 2021, with associated addresses illegally receiving $ 14 billion in 2021.

Chainalysis noted a number of militant organizations that had made efforts to finance its operations with criptomonedas.

The terrorists are abusing criptomonedas

However, Martynova noted that cash payments still provide the great majority of the terrorism in the world. He also highlighted the use of an informal system of transfer of value known as “hawala”. The practice, which involves the use of intermediaries, and adheres to islamic principles and is commonly used in the Middle East.

The Un official explained that the terrorists often adapt their methods of fundraising to adapt to the constraints imposed by his environment. For example, if you want to collect money from a territory that uses mobile payments as a common form of pay, will abuse this mechanism,” he said.

But if the terrorists are effectively excluded from the formal financial system, it is more likely that abuse criptomonedas.

Member states to intensify the game

It has been followed by a greater scrutiny of transactions cryptographic root of international efforts to combat its use for illicit purposes. Martynova referred to a resolution of the Council of Safety of the UN, which calls on member states to step up its regulation of criptomonedas.

He also made reference to the global standards recommended by the International Financial Action Group, which focus on the tracking of transactions of blockchain in all jurisdictions.

Unfortunately, Martynova regretted that the application of these regulations continues to be sadly disappointing. Only 27 of 98 jurisdictions in a recent survey reported that they had begun to create a regulatory framework for criptomonedas. In consequence, even fewer have been in a position to enforce them.

A criminal activity associated with the criptomonedas, which has been growing in importance are the attacks of ransomware. This week, the administration Biden is hosting a global summit with the participation of officials from all over the world, to address the problem.

A White House official said that the aim of the meeting would be to establish a coordinated approach at the global level on the topic.