Terrorist Funding: Old School is Still Cool
Even though cryptocurrencies are becoming more popular, terrorists are still sticking to the tried and true methods of funding their operations: cash.
Singapore’s latest terrorism threat assessment report highlights this trend. While there’s been a slight increase in crypto use by terrorist groups since 2020, it’s still a tiny fraction of the money they raise through traditional methods.
Cash is King
The report found that groups like ISIS rely heavily on cash couriers, traditional bank transfers, and the hawala system (a way to move money without actually moving the cash).
Crypto: Not Quite the Game Changer
While cryptocurrencies have the potential to be used for untraceable transactions, they haven’t become the go-to funding method for terrorists.
There was one case in February where a pro-ISIS group in the Philippines tried to use crypto to raise funds, but this hasn’t become a widespread trend.
Singapore Tightens Crypto Rules
Even though crypto isn’t a major player in terrorist financing, Singapore is still taking steps to regulate the industry.
In April, the country’s Monetary Authority (MAS) updated its Payment Services Act to include new rules for crypto service providers. These rules are designed to prevent money laundering and terrorist financing.
Last November, MAS also introduced trading restrictions, including a ban on lending and staking crypto. This is all part of Singapore’s efforts to make the crypto market safer.
The Bottom Line
While cryptocurrencies are gaining traction, they haven’t replaced traditional methods of terrorist financing. Singapore is staying ahead of the curve by implementing strict regulations to protect its financial system.
