Russia FSB vary of cryptocurrency terrorism use; Bortnikov speaks

Crypto is being used for good purposes like charity but there has been more than one incident where crypto some people using it for terrorist funding. Funding through cryptocurrency is a rising trend among terrorists;  Alexander Bortnikov, Russia’s FSB director shares these sentiments.

Alexander Bortnikov also noted that the activities are carried out by using ‘hawala’. ‘Hawala’ is a payment system mainly used by Muslims.

In this system, the payment is given to an intermediary who then manages an associate to give the payment to the last beneficiary. This method requires no physical proof like documents as well.

The head of the Russian Federal Security Service (FSS) also commented about terrorist networking at a conference hosted by the heads of Commonwealth Independent States (CIS).

He further stated that the digital payment medium which also happens to be decentralized is the first priority for terrorists to receive transactions nowadays. Terrorist funding is dependent on heinous criminal activities like illegal trading of oils and slaves.

In 2018, He revealed that terrorist organizations were supporting the crypto and digital space’s improvement so that they can use it more easily. Over five thousand terrorist group members are settled near CIS borders and northern Afghanistan.

Recently it was revealed that the most famous terrorist group ISIS used Bitcoin to fund a suicide bombing mission in Sri Lanka. This bombing event caused over a hundred and fifty (253) innocent lives

Russia plans to make some rules mandatory to tackle this terrorist funding issue. They will ask users through banks to obtain information regarding where the crypto they earned came from and where they used it in five days time. This question might be followed by if the client owns any mining equipment and if they do then appropriate documents to prove ownership and lease of the equipment should be presented.

Russia also believes that crypto space is harmful to its financial ecosystem. Reports indicate that Russia has suffered major hits on its financial stability in the past few years.