In a recent turn of events, crypto assets have appeared as an effective conduit for transferring funds to support the Hamas militants. The shift to crypto terrorist financing has attracted the attention of global policymakers and regulators.
On Wednesday, October 25, Sean Casten, a representative of Illinois, revealed plans to formulate a new bill to back the existing Bank Secrecy Act (BSA). This provision was adopted by Congress in 1970, aiming at mitigating money laundering activities in the United States.
US Lawmakers Urge Biden Administration to Address Terrorist Financing
Under the BSA, investors and businesses are mandated to keep proper books of record and report to the relevant authority on compliance matters. In his address, Casten plans to revise the BSA requirement to combat money laundering activities.
The 51-year-old policymaker confessed that the proposed bill would correspond to Senator Elizabeth Warren latest submission on crypto terrorist financing. In light of Senator Warren’s October 18 address at the House Financial Services Committee, Casten noted that the two bills will focus on crypto funding illicit groups and national security matters.
He admitted the proposed legislation would support Warren’s earlier proposal at the Senate. Even though Casten failed to provide further details concerning the bill, he acknowledged that Warren had earlier proposed a bill to combat the use of crypto in money laundering and violating sanctions.
In July, the Massachuset senator had called for the amendment of BSA requirements. She suggested that the existing BSA principles should be extended to crypto miners, digital assets wallet providers, and token issuers to mitigate the misuse of cryptocurrency.
The fearless advocate for financial reforms aimed at creating an equitable, safe, and prosperous environment for US businesses. Her bleak prophecy came to pass on October 7 when the Palestine illicit group invaded Israel. The brutal attack claimed the lives of over 1,200 people.
Besides the killing, the Hamas group took hundreds of hostages, creating humanitarian crises in Israel. In response to the Hamas attack, the Israeli militants launched multiple airstrikes in Gaza to sever the operations of the Palestine terrorist groups.
Hamas-Israel War Intensify
As the situation becomes more chaotic, global regulators have stepped up to support Israel to restore its national security. A Wall Street Journal (WSJ) report revealed that Hamas had conducted a crypto fundraising before launching the deadly rampage in Israel.
According to WSJ, Hamas and the Palestine Islamic Jihad had launched multiple fundraising to raise $134 million in crypto to support its operation.
The WSJ revelation compelled the Israeli law enforcers to collaborate with crypto firms and banks to freeze all accounts tied to the Hamas group. Reportedly, Binance and Tether were among the crypto firms that supported the Israeli authority in blocking all addresses and wallets owned by the Hamas group.
In response to the regulatory action taken by the Israeli law enforcers to sabotage Hamas funding sources, Senator Warren led over 100 lawmakers to urge the Biden administration to address terrorist financing. The bipartisan members penned a joint letter to the White House and the Department of Treasury on matters concerning “crypto-terrorist financing.”
US to Sever Hamas Funding Sources
In the letter, the lawmakers requested the Biden officials to explore effective strategies to address the misuse of crypto assets. They urged Congress and the White House to take strategic actions to mitigate the use of crypto in unlawful financial activities to prevent another crisis.
Based on the complexity of the matter, the lawmakers demand the two regulatory agencies to respond by the end of October. The letter forced other regulatory agencies to intervene to weaken Hamas’ financial capabilities.
In a separate document, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) in the US announced plans to take decisive action to block Hamas revenue sources. A statement from the Secretary of the Treasury, Janet L. Yellen, argued that the US would take potential action against the Hamas financiers and supporters.
