Live Chat

Crypto News

Cryptocurrency News 10 months ago
ENTRESRUARPTDEFRZHHIIT

US Senators Propose Legislation to Counter Terrorism Financing via Cryptocurrency

Algoine News
Summary:
U.S Senators Mitt Romney, Mark Warner, Mike Rounds, and Jack Reed have proposed the Terrorism Financing Prevention Act, aiming to counter terrorism funding via cryptocurrency, specifically in response to Hamas' Oct. 7 attack on Israel. The act enables the U.S. Treasury Department to extend sanctions to entities providing financial support to terrorist groups through digital currency. This move comes amidst voiced concerns by U.S. lawmakers about the alleged role of crypto in funding terrorist activities. The proposal includes provisions for transactions to be halted with a foreign digital asset facilitator if identified as a sanctioned entity.
A group of legislators from both political parties in the U.S. Senate have presented a bill to combat the utilization of digital currencies in funding terrorist activities, specifically referencing the Oct. 7 assault by Hamas on Israel. Senators Mitt Romney, Mark Warner, Mike Rounds, and Jack Reed unveiled the Terrorism Financing Prevention Act on Dec. 7. This act proposes extending U.S. sanctions to those providing financial support to terrorist groups through cryptocurrency or traditional money. Senator Romney indicates that this act would enable the U.S. Treasury Department to confront "emerging threats involving digital assets" following the Oct. 7 assaults and activities by the terrorist group Hezbollah. Senator Rounds emphasized the necessity for the Treasury Department to have adequate counter-terrorism mechanisms to address these contemporary challenges. He described the Terrorism Financing Prevention Act as a logical progression towards eradicating terrorism by imposing sanctions on overseas financial institutions and foreign digital currency companies that aid them in these dreadful acts. The proposed legislation contained clauses that would empower the U.S. Treasury to halt transactions with an overseas digital currency transaction handler if it was a sanctioned entity. The Treasury’s Office of Foreign Asset Control recently leveled sanctions against a Gaza-based crypto trader on Oct. 18 and included North Korean citizens on its list for employing cryptocurrency mixers to cleanse funds. As the perceived involvement of crypto in funding terrorist organizations has become more widely recognized, a number of U.S. legislators have voiced their concerns. In the wake of the attack on Israel by Hamas, Senator Elizabeth Warren along with over a hundred members of the Senate signed a letter in October, urging action to significantly reduce illicit crypto activities used to bankroll such organizations. At a hearing on Dec. 6, Warren alleged that North Korea had financed about half of its missile program using the “profits of crypto crime”. However, Elliptic, a blockchain analytics firm, found no significant evidence to suggest that Hamas had received substantial crypto donations to underwrite its assaults in October.

Published At

12/8/2023 8:10:20 PM

Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.

Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal? We appreciate your report.

Report

Fill up form below please

🚀 Algoine is in Public Beta! 🌐 We're working hard to perfect the platform, but please note that unforeseen glitches may arise during the testing stages. Your understanding and patience are appreciated. Explore at your own risk, and thank you for being part of our journey to redefine the Algo-Trading! 💡 #AlgoineBetaLaunch