Per a report from the Cambridge Center for Alternative Finance (CCAF), fossil fuels have been the primary energy source for BTC mining since the start of the year. The CCAF recently updated its Cambridge Bitcoin Electricity Consumption Index (CBECI). Its study claims that 62% of all the energy the leading token has consumed so far consists of coal-based energy. BTC’s Energy-Intensive Mining Bitcoin employs the proof-of-work consensus mechanism to create new tokens and validate transactions on the blockchain. The PoW…
According to crypto exchange Coinbase, terrorist financing crypto transactions accounted for less than 1% of all activity in the crypto space last year.
The world is keen on terrorist financing, especially through cryptocurrencies, as the Taliban group took over Afghanistan. Moreover, many believe the Taliban may consider crypto as a way to finance its operations. It could be due to the decentralization of cryptocurrencies that might pose a safe spot to conduct terrorist financing.
Nevertheless, all illegal transactions carried in 2020 denoted far less than 1% of all activity in the crypto realm. The digital currency exchange platform added that the industry has grown. However, Coinbase believes Satoshidice, Mt. Gox, and the Silk Road’s illegal activity may still apply.
The crypto community should not worry much, nor should the traditional financial system. That’s because illegal transactions represent far less than 1% of all activity in the crypto space in 2020.
The War against Terrorist Financing
Through the analysis, the crypto community is on the lookout for any terrorist financing-related activity. Coinbase focused on the most recent prominent terrorist-related organizations’ fundraising efforts.
The crypto exchange noted that Hamas had raised the most illegal funds by far. Coinbase added that it’s because Hamas has a routine of soliciting fundraising donations primarily in the form of bitcoin. Moreover, they noted that Hamas used its Telegram channels and website to oversee the illicit activities.
In January 2018, Hamas kick-started their routine of soliciting donations in Bitcoin using singular donation addresses. On the other hand, altcoins have had their share of illegal fundraising too. The analysis discovered that altcoins-based fundraising had gained some interest over the years.
The crypto exchange platform stated that terror organizations began receiving ETH, ERC20 tokens, and XRP from August 2020 to August 2021. Coinbase said the illegal fundraisings could have ties to a Saudi-led jihadi activist movement.
Tactics to Mitigate Terrorist Financing
Coinbase stated that it blocklists any organizations’ crypto addresses associated with any identified terror funding campaign.
It also detects broader terror organization campaign efforts in the crypto realm. Lastly, it coordinates with law enforcement agencies to stop these terror financing campaigns.
Currently, cryptocurrencies are at an all-time high, with institutional and consumer interest in crypto rapidly gaining traction. Moreover, there has been a constant rise of interest in decentralized finance (DeFi). For that matter, it’s crucial to detect and eliminate any terrorist financing activities in cryptocurrencies. It will significantly help cryptocurrency achieve the mainstream adoption it has anticipated for many years.