Coinbase, the largest exchange in the United States, has taken a firm stance of not assisting Hamas or any terrorist group in the context of the conflict occurring in the Middle East. They outlined their strategy and expressed their opposition to the misuse of cryptocurrencies in illegal activities. This occurs in a context where the role of cryptocurrencies in the global financial system is still being debated, including what should and should not be regulated.
Coinbase Against Terrorism
Coinbase issued a statement in which they asserted that absolutely no currency, whether fiat, gold, or crypto, should ever be used to assist Hamas or any terrorist organization. Furthermore, they emphasized their commitment to thwart any malicious actors attempting to exploit cryptocurrencies for harmful purposes.
The exchange is collaborating with various government law enforcement agencies. They are also implementing a comprehensive program with various security and control mechanisms such as “Know Your Customer” (KYC), reporting of suspicious activities, and sanctions. They also emphasized, “Blockchain analysis technology allows us to trace, report, and even prevent the financing of terrorist activities.”
The statement also emphasizes the financing of terrorists. These organizations primarily use cash in their operations. Coinbase highlights the transparency in blockchain-based transactions and aims to showcase the contrast between cryptocurrencies and traditional financing methods. The immutable nature of these transfers makes tracking them easier and serves as a deterrent against misuse. On the other hand, physical money is challenging to trace as it circulates among institutions and territories.
The conflict is spreading across various borders. Israel is taking measures to deal with digital assets in the possession of Hamas. It has been reported that terrorist militants used cryptocurrencies to finance their attack.
