Having extreme belief in a religion does not make them stupid. You should not underestimate your enemy. Anyone use Cash, anyone use BTC. Not that it matters anyways.

Money is like food, or a car, it does not matter who use it. People should do better things with their time than point fingers at silly things.

EU just have to require controls to all the BTC exchanges (from EU)who are not financial licensed(99% are NOT). This will bring to almost zero the BTC transactions in EU.

After EU, other parts of the world will take this example and they will do the same. That means the end of Bitcoin(not as system but as value) because BTC is formed by black market (over 90%) and the guys who are are making "black or grey" biz, are not happy with a system who are requiring more and more documents and providing a lot of headaches.

So, they will migrate to "something else".  It will happen soon.

Whether that wallet is really owned by ISIS or not does not change the possibility that BTC is being used by criminal entities right this minute.

It's the perfect tool to move funds anonymously if you know what you're doing.