A bipartisan group of representatives submitted a bill to Parliament aimed at creating a task force focused on combating terrorist financing through cryptocurrencies.
What’s in the bill
US Representative Ted Budd (R-NC) sponsored a new law that aims to create an agency tasked with combating the use of cryptocurrencies in financing terrorism.
The bill – HR 296 – is co-sponsored by Representative Warren Davidson (R-OH), Stephen Lynch (D-MA), Byron Donalds (R-FL) and Darren Soto (D-FL) and was introduced Wednesday.
In addition to creating a task force, the bill aims to:
“It is necessary to give rewards for information that will make terrorists convicted of using digital currencies. The aim is to establish Fintech Leadership in the Innovation and Financial Intelligence Program to encourage the development of tools and programs to combat terrorist and illegal use of digital currencies.
Following the introduction, the bill was referred to the Financial Services Committee and the Budget Committee for preliminary discussions. Representative Budd is a known supporter of crypto and blockchain in Congress.
In 2019, Representative Budd advocated calls for more clarity in the country’s crypto tax laws. It also submitted several bills aimed at improving the regulatory standards of the industry in the US.
Anti-Money Laundering and Combating the Financing of Terrorism continue to be a key anti-crypto talking point for several government agencies, while cryptocurrency forensics point to the limited adoption of cryptocurrencies by terrorist organizations. In May 2020, blockchain intelligence agency Chainalysis refuted allegations that ISIS owns about $ 300 million in Bitcoin.
However, it has been reported that the US Department of Justice seized crypto funds allegedly belonging to ISIS and Al Qaeda terrorist networks. In June 2020, there were also reports that media platforms affiliated with ISIS were collecting donations on Monero, a popular privacy coin.