Binance Accounts Used By Hamas and Islamic State Seized by Israel
According to reports, Hamas and Islamic State have exploited accounts on the cryptocurrency market Binance to finance their operations. According to Reuters, Israeli police confiscated the account to fight terrorism on May 5.
Since 2021, Israel has seized some 190 accounts, with the National Bureau of Anti-Terror Funding (NBCTF) seizing accounts no later than January 12.
No word on how much cryptocurrency was taken or if other exchanges checked similarly. There is little information available other than the fact that the police are concentrating on seizing accounts on cryptocurrency exchanges.
Binance was quick to reply to the Reuters article in a post titled “Our Response to Reuters.” According to the email, the publication “willfully omit important facts to fit their narrative”.
Binance underlines that it does more than others to keep bad actors off its trading platform. According to the exchange, “the true compliance measure for crypto exchanges is the steps needed to identify and react to suspicious deposits, and Binance is an industry leader in this area.” When we become aware of inappropriate behavior, we intervene and take necessary action, including freezing money and working with the law enforcement to assist with investigations.”
Governments around the world have started concentrating on preventing cryptocurrency asset classes from being used to support terrorism. The United Nations said in October 2022 that cryptocurrencies were increasingly being used in terror financing.
Australia and India have also discussed this trend and are taking appropriate action. According to one Chainalysis assessment, money for illegal operations has doubled in the previous five years, reaching $20 billion.
Many of these funds have been transferred to internationally sanctioned organizations. Most of it was transferred to the Russian cryptocurrency exchange Garantex.
While struggling to combat terrorist financing, Israel has also been working on crypto laws. The state budget for 2023-2024 contains crypto-related measures to make tax reporting simpler.
The Israel Securities Authority is also developing a new classification for digital assets that will place it within the government’s jurisdiction. This will help establish investor protection, a key agenda item on any government’s crypto regulatory plans.