Published: October 25, 2023, 20:41 IST
Various Terror Groups Exploiting Crypto Exchanges for Instant Money Transfers, Warns Intelligence Sources
A recent survey of the dark net has revealed that cryptocurrency is being utilized to fund terror activities, according to reliable intelligence sources. These sources highlight that India’s alert oversight mechanism makes it difficult for terrorists to operate within the country unnoticed.
“The tasks or terror activities are usually assigned from a country where crypto oversight mechanism is not very strong. Various terror groups are using these crypto exchanges for easy transactions to transfer money instantly,” stated the sources to News18.
Intelligence data also suggests that small amounts of money have been transferred through crypto exchanges in cases related to the Islamic State (IS or ISIS).
Terror operatives are adept at utilizing technology; however, they often enter the major danger zone unknowingly and attract the attention of law enforcement agencies.
Furthermore, it has been observed that approximately 90% of payments related to narcotics smuggling are conducted through cryptocurrency.
The decentralization and anonymity offered cryptocurrency make it an attractive option for funding illegal activities. While Bitcoin has the potential to be a medium for financing terrorism, it currently plays a less significant role.
India Raises the Issue of Cryptocurrency at G20 Summit
At the recently concluded G20 summit, India successfully convinced participating countries to prioritize discussions regarding the regulation of cryptocurrency.
It was argued that as cryptocurrency gains popularity as a preferred mode of payment, its misuse for criminal activities and terror financing poses a significant concern.
India has been working on a crypto regulation law and has proposed monitoring through the Reserve Bank of India (RBI) and a similar regulatory mechanism.
Although cryptocurrency trading is allowed in India, it is subject to a 30% tax. However, it does not have legal tender status and cannot be used for banking purposes.
In the ongoing battle against terrorism, countries and regulatory bodies must establish stricter measures to ensure that cryptocurrency is not exploited for nefarious purposes.
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