Cryptocoin: Terrorists Prefer Cash than Cryptos
CRYPTOCOIN – Yaya Fanusie, director of analysis for the Foundation for Defense of Democracies, has given a testimony before the U.S. House of Representatives Financial Services Committee. According to Fanusie, the instances that terrorists are seeking to acquire funds through cryptocurrencies, are “rare to non-existent.” Instead, these groups much prefer cash than cryptocurrencies.
“The good news is that most terrorists, particularly those operating on jihadist battlefields, inhabit environments that are not currently conducive to cryptocurrency use,” Fanusie clarified.
He added, “they usually need to purchase goods with cash (which is the most anonymous funding method), often in areas with unreliable technology infrastructure. In addition, cryptocurrencies are based on distributed ledger (blockchain) technology, where users’ pseudonymous transactions are recorded for public viewing. This leaves a trail that unsophisticated users may find difficult to obfuscate. However, as digital currency usage grows, such barriers may fall away.”
Fanusie does not agree with the use of decentralized digital money. As per him, the cryptocurrencies are a force for evil. As a counterterrorism analyst at the CIA, Fanusie had the ears of the US military. In fact, he even personally briefed President George W. Bush on threats in 2008.
“Cold hard cash is still king,” Mr. Fanusie continued, “but jihadist groups are building diverse portfolios. Illicit actors adopt new technologies earlier than the broader public. When paper checks, credit cards, and Paypal each emerged, criminals exploited them early on. There are enough case studies of jihadist groups experimenting with cryptocurrencies to suggest that law enforcement and the intelligence community must prepare for terrorists to try to exploit digital tokens as the technology spreads.”
Meanwhile, the cryptocurrency committee has been battling connections to terrorism ever since the discovery of the existence of Bitcoin by politicians. This was put forward by governments.
“The first conflation of digital currencies and terrorism actually stems from a 2008 paper in the Richmond Journal of Law and Technology in which the author stated that ‘[terrorists] seeking to avoid detection have turned to other methods of transferring money, such as commodities trades, hawala, and digital currencies.’ In defining this latter phrase, the report referenced a paper entitled ‘The Cyber-Front in the War on Terrorism: Curbing Terrorist Use of the Internet.’ It was published in 2005. That’s right, a terrorist allegedly using digital currencies is older than bitcoin itself,” Fanusie explained.
Cryptocoin: SEC suspends two cryptocurrency products
On Sunday, the U.S. Securities and Exchange Commission has directly suspended trading in two cryptocurrency products. This inflicted confusion in the markets as to whether the products are exchange-traded funds (ETFs).
In a statement, the SEC said that trading in Bitcoin Tracker One and Ether Tracker One would be suspended in the United States on September 20.
These two products have assured that they would track the price of the cryptocurrencies with less fess. They were part of the Nasdaq Inc Stockholm’s exchange, however, trade “over in transactions” happen at the United States’ exchanges.
“It appears … that there is a lack of current, consistent and accurate information. Application materials submitted to enable the offer and sale of these financial products in the United States, as well as certain trading websites, characterize them as ‘Exchange Traded Funds,” the SEC said.
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