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There are several developing and well-developed countries alike――such as Thailand, China, the U.S., Canada and Singapore――that have taken effective steps to deal with the use of cryptocur- rencies. For example, virtual currency exchanges are under the purview of the anti-money laundering/counter-terrorist financing regime in a few countries, like the U.S. and Singapore, where the Travel Rule was enacted, which provided required guidance to VASPs on monitoring and sharing customer data with the relevant government authorities. These efforts need to be continuous and it is essential to have an appropriate and effective regulatory framework to address the menace of crypto terrorism and protect global security.
Apart from government initiatives, there is a need for public-private partnerships; a more coordinated approach will ensure terrorist issues are addressed more effectively while subsequently making the whole approach more inclusive. From a technological perspective, there is an acute need for crafting sophisticated and advanced tools to track and monitor the illicit activities on the dark web by terrorists and criminal organizations.
Conclusion
Cryptocurrencies have already shaken up the global financial ecosystem and brought disruption in a big way. However, the same disruption has also taken place in global terrorism. The basic features of cryptocurrency, which were introduced to push for a better and safe world, are now threatening global security and stability. Global terrorism efforts have begun adapting crypto terrorism and the physical battlefield is becoming a virtual one. Global leadership must take urgent,
concrete and effective steps against this issue. Another major terrorist attack like 9/11 should not take place――especially not one planned on encrypted apps and financed with cryptocur- rency――to get their attention.
Sachin Shah, financial crimes compliance professional and subject-matter enthusiast, shahmsachin@gmail.com
1 John F. Murphy, “The Impact of Terrorism on Globalization and Vice-Versa,” The International Lawyer, 2002, https://scholar.smu.edu/cgi/viewcontent.cgi?article=2112&context=til
2 Micah Zenko, “Bitcoin for Bombs,” Council on Foreign Relations, August 17, 2017, https://www.cfr.org/blog/ bitcoin-bombs
3 Dr. Daniel Eisermann, “Cryptocurrencies as Threats to Public Security and Counter Terrorism: Risk Analysis and Regulatory Challenges,” Counter Extremism Project, April 2020, https://www.counterextremism.com/ sites/default/files/Cryptocurrencies%20as%20Threats%20to%20Public%20Security%20and%20Counter- Terrorism_ENG%20Translation_April%202020.pdf
4 Steven Stalinsky, “The Cryptocurrency-Terrorism Connection is Too Big to Ignore,” The Washington Post, December 17, 2018, https://www.washingtonpost.com/opinions/the-cryptocurrency-terrorism- connection-is-too-big-to-ignore/2018/12/17/69ed6ab4-fe4b-11e8-83c0-b06139e540e5_story.html
5 Ibid.
6 Yaya Fanusie, “The New Frontier in Terror Fundraising: Bitcoin,” The Cipher Brief, August 24, 2016, https:// www.thecipherbrief.com/column_article/the-new-frontier-in-terror-fundraising-bitcoin
7 “India needs to check the use of cryptocurrencies in terror funding,” The Economic Times, August 6, 2018, https://economictimes.indiatimes.com/news/defence/india-needs-to-check-the-use-of-cryptocurrencies- in-terror-funding/articleshow/65290424.cms
8 Abhinav Pandya, “Cryptocurrencies: A New Scourge of Terror Financing,” Vivekananda International Foundation, August 2018, https://www.vifindia.org/sites/default/files/Cryptocurrencies-A-New- Scourge-of-Terror-Financing.pdf
9 “India needs to check the use of cryptocurrencies in terror funding,” The Economic Times, August 6, 2018, https://economictimes.indiatimes.com/news/defence/india-needs-to-check-the-use-of- cryptocurrencies-in-terror-funding/articleshow/65290424.cms
10 Andrew Mines and Devorah Margolin, “Cryptocurrency and the Dismantling of Terrorism Financing Campaigns,” Lawfare, August 26, 2020, https://www.lawfareblog.com/cryptocurrency-and- dismantling-terrorism-financing-campaigns
11 Eva Entenmann and Willem van den Berg, “Terrorist Financing and Virtual Currencies: Different Sides of the Same Bitcoin?” International Centre for Counter-Terrorism, November 1, 2018, https://icct.nl/publication/ terrorist-financing-and-virtual-currencies-different-sides-of-the-same-bitcoin/
12 Ibid.
13 “Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers,” Financial Action Task Force, June 2019, https://www.fatf-gafi.org/publications/fatfrecommendations/documents/ guidance-rba-virtual-assets.html#:~:text=Asset%20Service%20Providers-,Guidance%20for%20a%20 Risk%2DBased%20Approach%20to%20Virtual,and%20Virtual%20Asset%20Service%20 Providers&text=Orlando%2C%20FL%2C%20United%20States%20%E2%80%93%2021%20June%20 2019.&text=The%20FATF%20strengthened%20its%20standards,and%20virtual%20asset%20service%20 providers
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