Cryptocurrencies such as Bitcoin and Ethereum are important tools used by terrorist groups to finance their activities. These currencies offer a high level of privacy and difficulty in tracking compared to traditional financial systems. These groups rely on digital currencies as a means to raise funds and use them easily, highlighting the importance of these currencies in the world of organized crime.
Cryptocurrencies are characterized by not being subject to central control, making it difficult to track user transactions. While all transactions are recorded on the blockchain network, linking personal identities to encrypted addresses remains a complex task. Therefore, the ability of terrorist groups to conduct untraceable transactions enhances their use of these currencies to finance their secret activities.
These groups turn to cryptocurrencies as a way to raise funds and channel them across borders without the need to pass through the traditional financial system monitored by authorities. This allows them to fund their activities more effectively, while avoiding the scrutiny imposed on traditional banking transactions.
Furthermore, cryptocurrencies can be used in money laundering operations, making funds from illegal sources appear as if they are from legal sources. This complicates the tracking of funds directed towards terrorism and gives armed groups an additional advantage in maintaining the secrecy of their funding sources.
Although the use of cryptocurrencies in financing terrorism is relatively lower compared to traditional methods such as bank transfers and funding through charities, the increasing risks have prompted governments, cryptocurrency platforms, and financial institutions to collaborate in combating this type of illegal financial activities.
