European Commission Assessing Bitcoin's Role in Terrorist Financing

The European Commission said today it is assessing whether digital currencies such as Bitcoin could be used as fuel for terrorism and money laundering.

In a memorandum dated November 17, the Commission outlined the security status of the EU region, a few days after more than 100 people died in a series of terrorist attacks in Paris, France. It is reported that the notorious ISIS was behind these terrorist attacks. After the attacks, a hacker named GhostSec hacked into the ISIS network. According to him, the ISIS organization used cryptocurrency as its operating funds. There is evidence that the organization controls a Bitcoin address worth $3 million. Of course, it should be pointed out that most of ISIS's funds still come from illegal oil trade and gold.

According to the memo, the committee is investigating terrorist financing risks and the European Union adopted an anti-money laundering framework earlier this year that will pay “particular attention” to digital currencies.

The memo states:

“Among those sectors that are assessed, the use of virtual currencies will receive particular attention, as mandated by the European Council of 26 January 2015.”

Following the review period, the Commission will introduce a series of measures aimed at addressing the risks identified during the assessment process, which is expected to be completed by June 2017.

"Member States will have to comply with these measures or explain the reasons for requesting derogations," the memorandum reads.

It goes on to outline the committee’s plans to create a blacklist of countries that currently fall short in their anti-money laundering and terrorist financing regulations.

The review and forthcoming opinion follow anti-money laundering and counter-terrorist financing measures introduced in May this year.

Although the proposal does not specifically mention digital currencies, the currency exchange services it involves will likely apply to companies that provide digital currency services.

It is reported that the goal of the framework is to ensure full tracking of funds transfers within the EU.

Original article: http://www.coindesk.com/european-commission-to-assess-bitcoins-role-in-terrorist-financing/
By Stan Higgins
Compiled by: Satuoxi
Editor: Satuoxi
Source (translation): Babbitt Information