In a surprising development, the Islamic State (ISIS) group announced Now he calls for the use of cryptocurrencies. A new report has revealed that ISIS supports its terrorist operations as long as they adhere to Islamic law.
Compiled by UN Analytical Support Research by the UN Sanctions Monitoring Team indicates that ISIS members are increasingly demanding Sharia compliance checks on the digital assets they rely on to support their activities.
This is a major change as Islamic law has always been against cryptocurrencies. The UN report also highlights the comprehensive guidelines that ISIS provides its affiliates regarding cryptocurrency transfers. To enable these transactions, the terrorist group has created dedicated channels on the Telegram messaging service such as CryptoHalal and Umma Crypto.
Sharia Compliance Using Blockchain Technology
Sharia law, the religious law derived from Islamic beliefs, has long been at odds with cryptocurrencies. The distributed nature of digital assets and their rampant use in gaming and other illicit activities have made them incompatible with Sharia values in the past.
However, the UN assessment indicates that ISIS is now looking for compromises to enable it to achieve its goals. Cryptocurrencies Stricter rules and stricter monitoring could help ensure that funds are not used for illegal activities or to support terrorism.
Total crypto market cap at $2.16 trillion on the daily chart: TradingView.com
Implications for the cryptocurrency sector
ISIS’s push to use Sharia-compliant cryptocurrencies could have a significant impact on the entire Bitcoin market. A greater demand for greater control and oversight of the cryptocurrency ecosystem could arise if more terrorist groups and other illegal entities try to use digital assets.
Image: GV Wire
Exchanges, wallet providers, and other cryptocurrency service providers may be required to adopt stricter KYC and AML policies to prevent their platforms from being exploited for terrorist financing. This could increase compliance costs and potentially limit the availability of cryptocurrencies to legitimate consumers.
A- Regarding development
The alarming growth in the Islamic State’s claim to Sharia-compliant cryptocurrencies underscores the ongoing attempts by terrorist groups to use digital resources to further their malign agendas. Regulators, law enforcement, and industry players will be particularly important as the cryptocurrency sector evolves in helping to mitigate the risks posed by terrorist financing and other illicit activities.
The UN study reminds us of the need to maintain a strong, secure, and misused encryption environment for bad actors.
Featured image by Spiegel, chart by TradingView