As Cointelegraph reported, Coinbase has faced numerous legal issues lately as the US Securities and Exchange Commission reportedly threatened legal action if the exchange launched a high-yield cryptocurrency product – Lend.

However, such negative developments did not prevent the exchange from showing its compliance efforts. One topic The latest Twitter is a prime example.

“There is a lot of speculation about the use of cryptocurrencies in terrorist financing. So we asked our Special Investigation Team to look into this. Here’s what they found … “

Yesterday, Coinbase shared statistics on crypto’s connection to global terrorism and what it is doing to combat this threat.

Results of the Coinbase investigation

The “links” of cryptocurrency to terrorism are a major reason for FUD (Fear, Uncertainty, and Doubt) among policy makers and international regulators.

Yet a report from Coinbase’s Special Investigations Team found that “illegal activity” accounted for less than 1% of all activity in the crypto space in 2018. 2020. This conclusion is made after considering the blockchains or ledgers of BTC, ETH, LTC. drawn, BCH, XRP.

Regarding terrorism, the report says:

“If we continue our analysis of illegal activity, we find that terrorist financing (TF) -related transactions account for less than 0.05% of the total volume of illegal activity in 2020. As a result, funding for crypto-terrorists remains extremely low overall. “

It is worth noting, however, that the report identifies the Palestinian militant group Hamas as “stabbed” by most terrorist organizations.

Which coin do the terrorists prefer?

According to the report, Hamas has raised over $ 750,000 in bitcoin since 2018. After Hamas, the Saudi Arabia-led jihadist movement has raised over $ 250,000 in bitcoin and altcoins. In third place is a trade service related to the terrorist organization Al-Qaeda.

The source: Coinbase blog

Bitcoin is the most famous cryptocurrency in the terrorist financing arena, but the report also identifies altcoins like XRP and ETH as growing in popularity.

Bitcoin’s popularity is due to its status as the largest cryptocurrency and its relative stability. Meanwhile, the use case of XRP is similar to the hawala cross-border remittance method popular in the cultures of the Middle East and South Asia.

To prevent terrorist financing campaigns, Coinbase announced that it would “block” crypto addresses associated with such an organization, use their analytics and work with agencies like the FBI.

Analysis of Hamas

Simply put, the Palestinian organization that seeks to destroy Israel has two main components: military power and welfare.

In 2020, Chainalysis reported how the organization’s Izz ad-Din al-Qassam (AQB) brigades launched multiple campaigns to raise bitcoin donations. Their tactics are mostly video tutorials for basic and experienced tech users, as well as unique billing addresses for each sponsor.

While crypto-terrorist funding is a small part of the broader DeFi sector, traders can expect many exchanges and companies to emerge tracking organizations classified as terrorist groups.

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Minh Anh

According to AMBCrypto

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