Bitcoins and similar cryptocurrencies have become attractive to terrorists who see them as a means to solicit donations, purchase or sell weapons in the dark web and move funds globally to boost their financial capacities. Cryptocurrencies are privacy-focused and thrive on a decentralised financial ecosystem.

This allows cyber criminals to circumvent financial institutions and their operational tools which have been designed to counter terror funding. The high profit rate and value volatility of cryptocurrencies may lead to its large-scale adoption by extremist groups which are desperate for a new fundraising mechanism to sustain their activities.

… Ahmad Helmi Hasbi is a Research Analyst and Remy Mahzam is an Associate Research Fellow at the International Centre for Political Violence & Terrorism Research (ICPVTR) from the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University (NTU), Singapore.