With crypto adoption into the mainstream financial world in the future looking feasible, Ex-CIA Agent has highlighted the demerits of this possibility.
One of the issues face by the crypto space in 2018 remains constant crackdowns and the cynicism of nations about the decentralized and anonymous nature of cryptocurrencies. Ex-CIA agent, Yaya J. Fanusie, pointed out how cryptocurrencies are becoming catalysts to the growth of terrorist organizations.
Speaking at an event, the Ex-CIA Agent explained how terrorists are expanding their bases of operations with crypto financing. He pointed out that with the crypto world constantly pushing towards adoption, there is a probability of them being accepted in the financial scene.
However, he pointed out that that their anonymous nature will allow them financial terrorism and other fraudulent activities. He gave instances of multiple jihadist campaigns on social media masquerading as fundraising for legitimate reasons.
He cited an instance where a jihadist funding campaign, Al-Sadaqa, took to social media channels to campaign for funds to support fighters in Syria.
“The group encouraged followers to purchase Bitcoin vouchers from website that took payment in Euros, the group hosted sites where supporters could use Bitcoin ATMs to buy cryptocurrencies so clearly the campaign organizers were trying to make the Bitcoin process easier for novices.” He said.
He proceeded by explaining that the group had moved from Bitcoin to other privacy-centered coins like Monero, Verge and Dash coin.
Privacy-Centric Coins could Promote Terrorist Funding
With coins like Verge and Monero constantly working on making sure anonymity and privacy features are made available to users on their transactions, they, according to Yaya J. Fanusie, could be the best tool to ensure terrorist funding.
This is majorly because though Bitcoin transactions are decentralized, their transparent nature is not exactly easy to overlook for these bad actors. With privacy promised, transactions are hidden from the public and almost untraceable.
“[…] the group’s most significant adaptation was eventually branching out beyond Bitcoin by early 2018. The group posted on Telegram that they were accepting cryptocurrencies like Monero, Verge and Dash.” Fanusie said.