Global Courant 2023-04-28 17:58:19
GAZA — The armed wing of the Palestinian Islamist group Hamas said on Thursday it would stop receiving fundraising via the cryptocurrency Bitcoin, a method it has used for years, citing an increase in “hostile” activity against donors.
“This stems from concerns about the safety of donors and not to harm them,” the group said in a statement late Thursday, adding that efforts have been stepped up to prevent people and groups from sending Bitcoin funds.
The group, Izz el-Deen al-Qassam Brigades, Gaza’s most powerful armed faction that has fought several wars with Israel over many years, reiterated its call for “continued donation to Qassam and the resistance by all available means”.
The Israeli military contacted Reuters and declined to comment on Hamas’s statement.
For years, policymakers and regulators around the world have raised concerns about the illicit use of crypto, from money laundering to terrorism financing. Bitcoin and other cryptocurrencies offer a high degree of anonymity, making them attractive to criminals.
However, advances in technology that track the movement of crypto on the blockchain ledger have made it easier for authorities to identify those behind crypto transfers. Many major crypto exchanges are now conducting ID checks on customers as well.
Hamas had endorsed crypto as a fundraising method for years and previously developed sophisticated tactics to solicit Bitcoin donations.
The group does not disclose where its funding comes from, but leaders have often cited donations from individuals across the Muslim world as a key source. According to officials on both sides, Iran has also always been a major financial and military backer of the group.
Hamas is classified as a terrorist organization by the United States, Great Britain and the European Union. That means in the US, for example, it is illegal to give it money or training, with financial firms controlling related funds required to report it to authorities.
In 2020, the US halted efforts by the military wing of Hamas, the Islamic State of Iraq and Syria, and Al-Qaeda to raise funds via cryptocurrency, seizing approximately $2 million worth of crypto.
Gaza economist Mohammad Abu Jayyab told Reuters the Hamas decision implied they may have felt Israel could reveal donors’ identities or reach their wallets, which is why they sought to protect them.
“Maybe they also preferred to go back to old traditional methods or maybe they came up with more advanced methods,” he added. REUTERS
