Cryptocurrencies Still Used by Terrorist Groups, but Limited Compared to Traditional Alternatives

According to Decrypt, U.S. Deputy Treasury Secretary Wally Adeyemo stated that cryptocurrencies are still used by terrorist groups like Hamas, but their use is limited compared to more traditional alternatives. Adeyemo made these remarks during an event hosted by London’s Royal United Services Institute on Friday. He explained that terrorist groups and those who look to move money illicitly will use any new technology to do so, but the use of crypto is not the majority of the ways these groups are funded.Adeyemo mentioned that cryptocurrencies are an evolution of terrorist groups' attempts to find ways to circumvent international sanctions. After 2001, these groups partly shifted from a traditional banking system and turned to new payment solutions like PayPal and Venmo. He emphasized the importance of the crypto industry working with the government to prevent cryptocurrency from being used and abused by terrorist groups going forward.The U.S. Treasury Deputy Secretary also discussed the so-called mixers, tools that seek to make it harder to trace the origin of crypto funds by mixing coins of multiple users. He said that the Treasury would hold those who develop these kinds of tools responsible for making sure they're taking steps to prevent terrorists from using these innovations. Adeyemo added that the U.S. government expects financial institutions, crypto firms, and other players in the crypto industry to take steps to prevent terrorists from accessing resources, and if they do not act, the United States and its partners will.