Brussels terrorist attacks lead to tighter government regulation, will Bitcoin be destroyed?

Rage Comment: Government agencies have always been afraid of the potential risks of Bitcoin, believing that this currency without a central regulatory agency will become a financing paradise for terrorist organizations. The terrorist attacks in Brussels have made the government begin to closely monitor digital currencies. However, according to the analysis of experts in this article, legal tender has always been the currency commonly used by terrorism because its circulation cannot be traced. And because digital currency has records to follow, terrorist organizations using it for financing are actually exposing themselves. The transfer of digital currency such as Bitcoin is open and transparent, and Bitcoin transactions will also follow government systems, so it will not become the first choice for terrorist organizations to finance, and the government has no need to ban its circulation.

Translation: Nicole

On the morning of March 22, a terrorist attack occurred in Brussels, Belgium, killing at least 34 people. Will this lead to more and more virtual currencies being monitored?

The frequent terrorist attacks in Europe are indeed unfortunate, as the Brussels Airport attack and the Maalbeek subway attack occurred only four months after the Paris attack on November 13, 2015. Terrorist organizations have caused fear among people all over the world. This type of terrorist attack means that the financing of terrorism is unsettling for security agencies, governments and the public.

As the number of virtual currencies under surveillance increases, can Bitcoin and other cryptocurrencies be eliminated from illegal use by terrorist organizations and their supporters? Will government search regulations bring down the Bitcoin edifice? Let's find out against the backdrop of the brutal terrorist attack in Belgium.

Could a terrorist attack destroy cryptocurrencies?

Bitcoin and other cryptocurrencies are in the crosshairs of governments. In fact, the European Union is considering tightening controls on virtual currencies like Bitcoin and stored-value cards.

The EU said new financial instruments such as virtual currencies create new challenges in the fight against terrorist financing. If current methods are too risky for terrorist criminals, they will quickly find other ways.

The national government's concerns are not entirely unfounded, as the Paris terrorists on November 13 also used stored-value cards to pay for their rooms.

What do we need to do?

Eric Grill of CoinOutlet, a Bitcoin ATM provider, suggested that we have to tell the government that government-issued paper currency is completely untraceable because it is in cash form.

“I think using virtual currencies is a terrible way to fund terrorist organizations, and using untraceable fiat currencies is much better.”

On the other hand, Bitcoin makes all transaction information public through the use of blockchain technology. In fact, the infamous Silk Road illustrates this principle. In a criminal investigation, Bitcoin wallets were tied to criminals, making it relatively easy for prosecutors to find transactions.

A paper written by researchers at the University of California, San Diego, “A Fistful of Bitcoins: An Anonymous Payment Method,” takes an in-depth look at tracking Bitcoin.

Terrorist organizations financed with fiat currencies

Aaron Koenig

We must remember that international terrorist organizations have been financing themselves before the advent of virtual currencies, prepaid cards or other electronic money transfers. Anyone who has lived in South Asia, Africa or West Asia knows about the Havana Exchange, which was widely used by Al Qaeda before 9/11. Many terrorist organizations prefer to trade with similar cash or fiat currencies because they are difficult to detect. Aaron Koenig, founder and promoter of BXB, the first live Bitcoin exchange in Europe and secretary general of the Global Bitcoin Alliance (a non-profit organization promoting the decentralized network of Bitcoin), responded to this: "Virtual currencies such as virtual currencies such as the US dollar and the euro can be created out of thin air by central banks and have indeed been used by governments and terrorist organizations to finance various terrorist activities. So I think these virtual currencies should be banned and only real currencies such as gold, silver and Bitcoin should be allowed to circulate."

Money is just a tool for people, and people can use it for good or bad. Bitcoin is an open, transparent and secure way to transfer money, which may be safer than traditional government-issued currencies.

“Currency converters, whether online or offline, are subject to the same obligations as other financial institutions,” said Juan Llanos, Bitcoin Anti-Money Laundering initiator and panelist and speaker at the Cryptocurrency Conference forum and webcast.

"In the United States and Europe, Bitcoin exchanges are at a minimum subject to AML/CFT regulations. These regulations include investigative measures such as obtaining and verifying the identities of all participants in a transaction, monitoring transaction activity, and uploading relevant information to the authorities."