Islamic State Demands Sharia Law-Compliant Crypto For Funding Terror Activities

As a seasoned crypto investor with over a decade of experience navigating the digital asset landscape, this latest development involving the Islamic State and their advocacy for Sharia-compliant cryptocurrency is both intriguing and concerning. I’ve seen many twists and turns in this industry, but never one that involves terrorism funding.


It’s been revealed that the Islamic State (IS) organization is promoting the use of cryptocurrencies to finance their terrorist activities, but only if these transactions adhere to the principles of Sharia law, according to a recent report.

As a member of the UN’s Analytical Support and Sanctions Monitoring Team, I have gathered data indicating that individuals linked to Islamic State (IS) are increasingly requiring Sharia compliance assessments for the digital assets they are relying upon to fund their operations.

As a seasoned financial analyst with years of experience in the industry, I find it alarming to learn about the increasing use of cryptocurrencies by terror groups such as ISIS. My personal life experiences have taught me that such activities can destabilize societies and undermine our shared values of peace and security. The fact that these organizations are creating specialist channels on platforms like Telegram for crypto transactions is a clear indication that they are finding new ways to fund their operations. It’s crucial for governments, financial institutions, and tech companies to work together to prevent the misuse of technology in this manner. We must take action now to ensure a safer future for all.

Sharia Compliance With Blockchain

Sharia law, rooted in Islamic teachings, has historically been at odds with cryptocurrency due to concerns over its decentralized nature and its frequent association with gambling and illegal activities.

According to the United Nations’ evaluation, it seems that IS is striving for agreements to make cryptocurrencies more in line with Sharia law. Stricter regulations and surveillance could potentially ensure that these funds are not misused for illicit activities or terrorist financing.

Islamic State Demands Sharia Law-Compliant Crypto For Funding Terror Activities

Ramifications For The Crypto Sector

The push of the Islamic State for Sharia-compliant crypto may have major effects on the whole bitcoin market. Greater demand for additional control and monitoring of the crypto ecosystem might arise if more terrorist groups and other illegal entities try to use digital assets.

Islamic State Demands Sharia Law-Compliant Crypto For Funding Terror Activities

To ensure that digital currency platforms are not misused for financing terrorist activities, stricter know-your-customer (KYC) and anti-money laundering (AML) regulations could be enforced on exchange services, digital wallet providers, and other crypto service providers. Consequently, this might lead to increased compliance costs and potentially limited access to cryptocurrencies for law-abiding consumers.

A Concerning Development

1. The increasing requests by the Islamic State for Sharia law accommodations in cryptocurrencies underscores their persistent efforts to exploit digital assets for malicious purposes. As the crypto market evolves, regulators, law enforcement agencies, and industry stakeholders will play a crucial role in minimizing risks associated with terrorist financing and other illicit activities.

The UN study underscores the importance of maintaining a robust and secure cryptographic environment that can withstand potential manipulation by malicious actors.

Read More

2024-08-04 09:11