Crypto and terrorism: Binance faces congress!

The potential link between crypto firm Binance and the financing of terrorism continues to elicit reactions. Specifically in the United States, where Congress has called on the federal administration to shed light on this allegation. This requires them to speak transparently about certain aspects of this issue.

Congress wants to understand the link between Binance and terrorism financing

It was thought that the allegation of Binance financing terrorism through cryptocurrencies had settled down. But that’s not the case at all. According to recent information, the issue generates so much bipartisan concern in the US Congress that it has approached the authorities.

In a joint letter to President Joe Biden and Treasury Secretary Janet Yellen, these lawmakers have urged the American authorities to take action. They are asking for an explanation, as quickly as possible, of the potential connections between Binance and the financing of terrorism.

The letter, made public on Friday, November 17, cites an alarming figure regarding this issue. More than 134 million dollars are said to have been funneled to Hamas and the Palestine Islamic Jihad via digital asset platforms between August 2021 and June 2023.

In this context, lawmakers want to obtain complete information on several key aspects. They seek details on crypto wallets linked to terrorist organizations, as well as information on the duration of these groups’ digital fundraising campaigns and the measures taken by the U.S. government against these illicit assets.

Clarification deemed necessary for transparency issues

Clearly, the American Congress is keen to know the full extent of Binance’s crypto exchange implications in this sensitive issue of terrorism financing. They expect a response from the federal administration by November 29.

In the letter addressed to it, they have also proposed a classified briefing if an immediate and detailed response proves difficult. And there is a reason for the pressure Congress seems to be exerting on American authorities.

Indeed, lawmakers stress the need for transparency. This is to understand how crypto entities like Binance could be involved. Furthermore, this situation would justify clarifications on the measures taken to mitigate these risks in the future.

One can imagine that this development will probably have consequences. First, for Binance, which has been facing difficulties for several months. Then, for the entire crypto ecosystem that could face strict regulation related to the fight against illicit financial activities associated with cryptocurrencies.