The UK Treasury declared that virtual currencies are of “low risk” when it comes to terrorists and their funding. The comment is giving out another sign of mainstream digital currency acceptance by the world and optimistic approach towards it.
This news won’t necessarily come as a surprise to enthusiasts and general defenders of crypto, but alas, it’s a significant development because it mitigates one of the most biting conservative critiques against cryptocurrencies, namely that terrorists could use the virtual money to bypass international financial sanctions.
The released assessment report coming from the Treasury, regulators and officials came to a conclusion that [U.K. related at least] terrorists attempts are seldom connected to financing, which makes any crypto-terrorist-abuse int eh Isles very unlikely.
“Unlike most other criminals, the raising and moving of funds is not a terrorist’s primary aim […] The UK does not typically see large-scale coordinating fundraising activity for terrorist groups. Recent terrorist attacks across Europe have demonstrated that the costs involved can be very low; for example, as low as hiring or stealing a vehicle or purchasing knives.”
So it is possible to say that In Europe, terrorists are in no requirement or need to raise BTC or ETH for any initiation of a certain activity as there are alternatives.
— Crypto Window (@CryptoWindow) October 27, 2017
For this reason, the Treasury’s report took the modest stance of suggesting it’s “unlikely” terrorists’ use of cryptocurrency financing will increase substantially over the next five years. This could change, of course, and the situation will be re-evaluated during the next Treasury report in 2022.
However, as adoption of these currencies surges in general then the risk that cryptocurrencies are put to nefarious ends would increase:
“As the number of businesses accepting digital currency payments grows, there is an increasing risk of criminals using the currencies to launder funds without needing to cash out into non-digital, or ‘fiat’ currencies.”