Crypto Plays Minimal Role in Hamas' Fundraising, Says U.S. Treasury Official

By: Eliza Bennet

Disproving widespread beliefs, Brian Nelson, Undersecretary for Terrorism and Financial Intelligence at the U.S. Treasury, provided critical testimony to Congress stating that the involvement of cryptocurrencies in funding terrorist activities, particularly for Hamas, is minimal. His insights bring starkly different views amidst growing concerns about digital assets.

Narratives driven by media reports last year suggested a significant use of cryptocurrencies by terrorist groups, such as Hamas, especially following attacks in Israel. In response to these concerns, Nelson emphasized that these groups continue to rely more on conventional banking and financial services than cryptocurrencies. His assertion corrects misinformation and discards the need for imposing stricter regulations on cryptocurrencies.

On top of this, Nelson has urged Congress to furnish the Treasury with more tools to effectively combat any potential misuse of digital assets by terrorists. Nevertheless, he reiterated that traditional financial mechanisms still count for the majority of illicit activities by such groups.

Acknowledging the limited use of crypto, he takes a balanced approach to regulation and warned the parties of the potential misuse of digital assets by criminals, besides advocating their benefits.