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Militant groups use different methods to move money, including cash, banks, shell companies and charities, and informal financial networks. Crypto is a small part, experts say.

WHAT ABOUT OTHER FORMS OF ILLICIT FINANCE?
Terrorist financing is a small part of the illicit uses of crypto, which include scams, ransomware and theft.

Crypto crime hit a record $20.1 billion in 2022, Chainalysis said, calling this a lower bound estimate. That figure excludes when cryptocurrencies are the proceeds of non-crypto crimes such as payment for drugs.

Cryptocurrency theft via cyber attacks is also a significant source of funding for North Korea, according to UN reports.

Some banks in the UK have curbed customers' access to crypto because of a rise in crypto scams.

But here's the catch, those sneaky terrorists probably already know this stuff and might be one step ahead, making it harder for the government to trace them. Sure, the exchange can freeze the funds, but finding out who owns that wallet? Now that's the real challenge.

So how dare they blaming it all in crypto?

It's a fact that cryptocurrencies are sometimes used for terrorist financing and other illicit purposes, but that doesn't necessarily make crypto the primary player in such activities. According to Chainalysis, only "1% of the entire crypto market is involved in illicit activity." This is because there are alternative sources for these funds that are much larger than the crypto space.

Overall, the share of all cryptocurrency activity associated with illicit activity has risen for the first time since 2019, from 0.12% in 2021 to 0.24% in 2022. [2]

Our full 2023 Crypto Crime Report will dig into the details of the criminal activity behind that 0.24%, as well as what our on-chain analysis reveals about the market failures of the last year.

It's a fact that cryptocurrencies are sometimes used for terrorist financing and other illicit purposes, but that doesn't necessarily make crypto the primary player in such activities. According to Chainalysis, only "1% of the entire crypto market is involved in illicit activity." This is because there are alternative sources for these funds that are much larger than the crypto space.

The reason why they want to paint crypto as a funding source for terrorism is because they cant really control in. BUT in order to add more controls/rules for crypto they want to have a reason and theres no easier exlanation than terrorism/money laundering.
In reality, vast majority, if not pretty much all of terror financing is done using the USD.

The US government is coming up with laws that will make mixing services a threat to the county's security. What is their reason? There is news going around that Hamas is using cryptocurrencies to finance the war in the Middle East. The government immediately used this unverified information as the major reason to truncate the freedom and privacy these services offer. If this law is enforced in the US there are possibilities that other copycat nations will follow suit. it is not a surprise that they want to invoke section 311 of the Patriot Act to classify privacy as terrorist financing. They know that cryptocurrencies play an insignificant role in terrorist financing but they just simply want everybody to be under their watch. But there will always be a way out.

So how dare they blaming it all in crypto?

So how dare they blaming it all in crypto?

Terrorist existed for a long time before Bitcoin was founded. So it's not reasonable to blame Bitcoin for the existence of criminals today. It is probable that they would misuse Bitcoin because it is decentralized, which means that you can use it anonymously. But what is the primary reason that criminals continue to exist today? Because someone is behind them and can make them easy to pay a person with crypto. But we must remember that Bitcoin was created to protect us against opportunistic and bad people.

Terrorists are almost certainly not using crypto for their day-to-day terror activities. It's too inconvenient when most people don't have an internet device (you think they're allowed to carry mobile phones with them? They can be tracked by intelligence agencies.) It is likely only the financing of terrorism part that may possibly be done in cryptocurrency payments to a power broker.

It's a fact that cryptocurrencies are sometimes used for terrorist financing and other illicit purposes, but that doesn't necessarily make crypto the primary player in such activities.

That's not surprising for me, because, the points written in the proposal are valid but to some extent, I did not read the whole proposal but read around 15 pages, where they talked about CVC mixing and the darknet market of Russia that were used to launder money and to provide money to terrorism groups, especially of NK, I already did some research on the Lazarus group and other 4 main groups connected with Lazarus, they are working for NK.

Well, they really looted a hell lot of money, and still, they have money lying in their wallets that they will launder when the right time comes, well, I will say, they are doing their job which is to eliminate the crime rates and to control the money laundering issue. Even though many congressmen and other political parties have talked in favor of BTC and big businesses are going to accept the BTC and will allow the US citizens to buy those shares.

This is just a trap for the US citizens so that they will be left with no choice but to buy their ETFs by doing full KYC. I do not see it as a threat to BTC, because BTC in itself is not used and reliable for Money Laundering, instead, the tools used to obfuscate the TX are the ones they are most concerned about. Well, They are mostly concerned about darknet markets because in their own words on page 12
Quote
$35.2 million to CVC mixers and $252 million to darknet markets.

This indicates, that mixers are not the only and most reliable source for the bad actors to obfuscate money, but these are just to divert their time and attention.

~

Chainanalysis may not be scientifically accurate, but it's widely cited when people are trying to make a point about illegal usage of crypto funds.

Also, the article pointed out that setting up a cryptocurrency wallet is a piece of cake, and it's pretty tricky to trace the owner, even though all transactions are right there on the blockchain, which is like a permanent public record. To dig up who's behind it all, they'd need an account on one of those fancy, government-regulated 3rd party exchanges. That way, the government can just tell them to cooperate with the investigation. But here's the catch, those sneaky terrorists probably already know this stuff and might be one step ahead, making it harder for the government to trace them. Sure, the exchange can freeze the funds, but finding out who owns that wallet? Now that's the real challenge.

People tend to only throw hates at what they don't understand, instead for them to learn and understand the idea behind Bitcoin existence they choose to hate.

And this is the main reason behind people who hate bitcoin; they don’t want to learn and know how it works, and that is why they always tend to throw some hate and keep lying that bitcoin can be used for such things. However, since the existence of this industry, I have never seen a proof where they said this is the proof where bitcoin was used in this kind of act. Even though they always say something like this, they don’t really have proof of that.

However, some people lie because they don’t want people around them to adopt bitcoin in the fact that they know that when they know about it, they will start having problems with businesses buying and selling goods because people will start using bitcoin to purchase things online because of it’s freedom and anonymity, especially government, they will also do it because their fiat banks will not get used again since the citizens will understand that btc transactions are easier than bank transactions and no one will have control over their savings.

Terrorists are almost certainly not using crypto for their day-to-day terror activities. It's too inconvenient when most people don't have an internet device (you think they're allowed to carry mobile phones with them? They can be tracked by intelligence agencies.) It is likely only the financing of terrorism part that may possibly be done in cryptocurrency payments to a power broker.

So how dare they blaming it all in crypto?

Militant groups use different methods to move money, including cash, banks, shell companies and charities, and informal financial networks. Crypto is a small part, experts say.

So how dare they blaming it all in crypto?

These are complaints you will always get from people who hate Bitcoin and yet has little or no knowledge about how it works, and forgetting that as a currency, whatever it's been used for doesn't describe what it stands for, because as a currency, it's liable to be used both for positive and negative things, just as gold and fiat has always been used as a medium of exchange for terrorist groups both local and international, and today Bitcoin is in no way an exception. Hence, since governments nor Central banks has no control over Bitcoin, such fake news is likely to be a tool used by them to scare people away from investing in Bitcoin but rather choosing to invest in fiat where they have control over the entire people's fund.

Crypto is indeed a small part of the criminal network of funding. Crypto is for everyone and anyone person can be anyone once they have understood how to use it and get the best gain from it.

Good and bad are opposites on this life's coin and while the government gets smart to curb the activities of criminals and terrorists, the criminals also device new payment plans and systems to fund their activities. It is just so painful that crypto currency is a means that they have learnt to use.

Am very certain the percentage of legal and trusted users of cryptocurrency are more as compared to those who use it to sponsor or support their terroristic or criminal altruistic tendencies.