The analytical company Chainalysis has published a report that dispels the myth around the use of cryptos to finance terrorism.
At the same time, the company points out the harm caused by such misinformation to cryptocurrencies and the reputation of the companies working with them.
Chainalysis states that one of its goals is to “prevent the use of cryptos by terrorists.”
“It's important to be prudent when publishing information on such an important topic as terrorist financing,” the company says.
So, Chainalysis refers to recent reports that ISIS stores about $ 300 million in bitcoins (BTC). In particular, Chainalysis indicates that the head of the UN Security Council monitoring group, Hans-Jacob Schindler, only suggested that cryptocurrencies “may be one of the ways [terrorist] funds use it.”
Chainalysis says that in any case, "Schindler's theory is greatly unlikely."
“Most terrorist financing campaigns raised less than $ 10,000, indicating limited recognition [of cryptocurrencies among terrorist organizations]. Besides, ISIS’s oil revenue stream, converted to bitcoins, would affect the trading volume of regional exchanges and financial companies.”
The Chainalysis report also casts doubt on the use of ISIS bitcoins in financing the bombings in Sri Lanka in 2019. The company refers to its other report, which refutes the use of cryptocurrencies in that case.
However, a report by the Philippines Institute for Research on Peace, Violence, and Terrorism indicates that ISIS in Southeast Asia is actively using cryptocurrencies to launder money.