While the U.S. is trying to address all possible terrorist financing loopholes against the backdrop of disturbing rise of domestic terrorism and hate crimes, some experts claim that crypto is “poor form of money” for terrorists. Back in 2018, U.S. Congress concluded that terrorist groups that attempted to raise funds via crypto have not had great success. Similarly, U.S. nonprofit think tank RAND Corporation said that crypto is not well-suited for the needs of terrorist groups.
Meanwhile, the European Union has recently enforced another important anti-money laundering law that aims to bring more transparency to financial transactions for combating money laundering and terrorist financing. Came into effect on Jan. 10, the European Union’s 5th Anti-Money Laundering Directive has apparently forced some crypto firms in Europe to shut down their businesses, partly due to requirements to disclose too much information about their clients.
