Vantage | How crypto and charity power Hamas terror

In the shadows of conflict, where tunnels, weapons and infrastructure fuel violence, a new player has emerged on the global stage – cryptocurrency. As the lens switches, the unsettling question arises: How did Hamas secure the funds for its operations? The answer lies in the realm of digital currency.

Rise of cryptocurrency in terror financing No longer confined to Swiss bank accounts or suitcases full of cash, terrorism funding has found a new ally in cryptocurrency. The switch to this digital medium has global implications, as evidenced by the financial backbone it provides to groups like Hamas. From 2019 to 2023, Hamas received a staggering $41 million in cryptocurrency funding. The funds flowed through virtual wallets, offering a degree of anonymity that traditional banking systems cannot match. However, Hamas isn’t alone in this digital surge – the Palestinian Islamic Jihad, another active player, received $94 million in cryptocurrency in recent years. Cryptocurrency mechanism The ease of crypto payments from anywhere in the world, coupled with its independence from government control, makes it an ideal choice for funding illicit activities. Unlike traditional banking transactions, crypto donations to groups like Hamas bypass bureaucratic hurdles, offering a streamlined process for supporters. Governments face a unique challenge in combating cryptocurrency-driven terrorism financing. While traditional financial channels are scrutinized, the crypto ecosystem often operates outside their purview. This regulatory gap allows groups like Hamas to exploit this alternative financial landscape. Iran’s role and individual contributions Reports point to Iran as a major contributor to the cryptocurrency surge in funding for Hamas. Individual donations from across the globe add another layer of complexity, as these transactions are discreet, ensuring anonymity for the funders. In a bold move, Hamas openly solicited cryptocurrency donations in 2019 through its military wing, the Al-Qassam Brigade. The appeal highlighted the challenge faced by authorities, given the decentralized and anonymous nature of cryptocurrency transactions. Hamas’ diverse funding sources Cryptocurrency is just one piece of the puzzle. Traditional funding sources, including Iranian support, individual contributions, fundraising activities, taxes collected in the Gaza Strip, and investments in businesses across West Asia, collectively contribute to Hamas’ financial strength. While Hamas continues to amass funds through diverse channels, the people of Gaza face a starkly different reality. More than a million live in poverty, with 80 per cent unemployment. As the conflict escalates, thousands are caught in the crossfire, highlighting the stark contrast between the financial power of Hamas and the suffering of the Gazan people. Cryptocurrency has emerged as a potent tool in the hands of terrorist organisations, reshaping the landscape of global terrorism financing. The challenge for governments lies in adapting regulatory frameworks to address this evolving threat, as the dark side of digital currencies continues to cast its shadow on international security. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views. Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.