Washington is intensifying its scrutiny of cryptocurrencies following reports of Hamas receiving funding through digital assets. Senators Elizabeth Warren (D-Mass.) and Roger Marshall (R-Kan.), along with Representative Sean Casten (D-Ill.), have urged the White House and Treasury to create a “plan” to prevent crypto from being used for terrorism financing. The lawmakers, supported by 86 bipartisan signers, acted in response to revelations that attackers in the Israel conflict received significant crypto funding. U.S. officials were already concerned about crypto’s potential use in terrorist financing, with agencies such as the Treasury Department, Department of Justice, and FBI warning of increased crypto use in money laundering, ransomware, trafficking, and terrorism.
In response to these concerns, the Treasury Department imposed sanctions on a Gaza Strip-based crypto exchange operator and senior Hamas individuals involved in managing the group’s investments. These developments have drawn attention to a bill introduced by Warren and Marshall last year, the Digital Asset Anti-Money Laundering Act. The bill aims to apply know-your-customer requirements to the crypto industry, close gaps that allow individuals to bypass anti-money laundering and sanctions checks, and require banks to verify customer and counterparty identities, maintain records, and report certain transactions involving unhosted wallets.
Senators Sherrod Brown and other lawmakers are also considering closer scrutiny of the crypto industry in the wake of the Israel conflict. However, crypto lobbyists argue against new anti-money laundering rules, fearing they will drive crypto businesses out of the U.S. The crypto industry is already engaged in battles with regulators over how digital assets will be regulated and is pushing for legislation to address regulatory gaps between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
Coinbase, a major cryptocurrency exchange, is collaborating with authorities to track Hamas-related crypto activity and has compiled a list of over 8 million crypto addresses related to terrorism financing and illicit finance. Coinbase is actively working to prevent the misuse of crypto for illicit purposes but also emphasizes the need for sensible crypto legislation in the U.S. to ensure the industry thrives in countries that uphold the rule of law and prioritize human rights and public safety.
, an independent military force, and allied militias in Sudan raped several dozen women and girls in West Darfur’s capital, El Geneina, and those fleeing to Chad between late April and late June 2023, Human Rights Watch said today. The assailants appear to have targeted people because of their Massalit ethnicity and, in some cases, because they were known activists.){kind=link}