U.S. Government Acts to Curtail Crypto Funding to Hamas

In an effort to combat the financing of terrorism, the U.S. government is imposing stricter trade regulations on entities associated with Hamas. This move comes as a response to a collective appeal from over 100 senators, urging the Biden administration to address the terrorist group’s exploitation of cryptocurrency. The senators have expressed concerns over Hamas and the Palestinian Islamic Jihad’s use of blockchain technology to facilitate transactions, with claims of these groups raising over $130 million in crypto. However, some experts in the crypto industry view this figure as an overestimation.

In response to these concerns, the Treasury Department has proposed new reporting obligations for financial institutions dealing with cryptocurrency mixers, which are known to obscure financial transactions on the blockchain. While these mixers can serve privacy purposes, they also pose risks by potentially enabling criminals and sanctioned entities to avoid detection. The Financial Crimes Enforcement Network (FinCEN) is also urging institutions to report any suspicious transactions linked to crypto mixers, extending its vigilance to mixers outside of U.S. jurisdiction.

This development underscores the government’s commitment to combating illicit financial activities and highlights the potential risks associated with the use of cryptocurrencies in financing terrorism.

Source: Crypto News