The Biden administration aims to strengthen regulation on illegal crypto activities to disrupt the financial flows of terrorist organizations such as Hamas.

According to a report by the Wall Street Journal, due to Hamas receiving some of its funding through cryptocurrency, President Biden and U.S. Deputy Treasury Secretary Wally Adeyemo have stated the need to strengthen the fight against illicit use of cryptocurrencies.

Biden Administration Seeks to Combat Illegal Cryptocurrency Activities

A U.S. Treasury official stated that due to cryptocurrencies being used by Hamas for fundraising, the Biden administration hopes to be granted new powers by Congress to combat illegal activities involving cryptocurrencies.

Wally Adeyemo, the Deputy Secretary of the U.S. Treasury, mentioned in Washington this Tuesday that the Treasury has been in communication with both Democrats and Republicans on this issue to prevent incidents like Hamas using cryptocurrencies for fundraising from happening again.

Adeyemo believes that Hamas openly seeking cryptocurrency to raise funds has brought more attention to the illicit financial uses of digital assets. He stated that Congress needs to take action on this matter and the Treasury will work with Congress to gain more tools.

Request for Self-Regulation by Cryptocurrency Exchanges

Following attacks in Israel, issues related to digital assets funding extremist organizations have once again come under scrutiny. The U.S. Treasury expressed concerns about the money laundering risks of anonymous services provided by cryptocurrency exchanges. Adeyemo believes that in addition to government actions, the cryptocurrency industry should engage in self-regulation. Companies involved in the cryptocurrency industry should take more actions to combat illegal activities.

Adeyemo mentioned that exchanges themselves have the capability to self-regulate through various means and can protect themselves from falling into the realm of illicit activities. They should innovate more responsibly.

Need for Objective Data Analysis

While the government aims to strengthen regulatory efforts to reduce the use of cryptocurrencies by illegal individuals for money laundering and other illicit activities, some argue that the actual situation may not be as severe. It is necessary to take a more objective perspective when assessing the impact of cryptocurrencies on the financial flows of terrorist organizations.