In a recent announcement on Tuesday, October 17, prominent cryptocurrency exchange Coinbase has embarked on a mission to thwart the flow of digital currencies to terrorist organizations, including Hamas. This initiative comes in response to the ongoing efforts by Israeli authorities to clamp down on crypto channels tied to Hamas amid the continuing conflict.
Coinbase’s Vigilance Against Terrorist Links
Coinbase underscores the critical importance of preventing the use of any form of currency, cryptocurrencies included, in supporting groups like Hamas. To address this issue, the exchange maintains a robust compliance program that encompasses Know Your Customer (KYC) checks, sanctions screening, reporting of suspicious activities, and collaborative endeavors with law enforcement agencies.
Furthermore, Coinbase leverages blockchain analytics technology to track, report, and hinder the flow of funds for terrorist purposes. This unwavering commitment aims to ensure that cryptocurrency remains a legitimate and safe medium of exchange, while the United States continues to take a proactive stance against financial crime and terrorism.
Coinbase proudly boasts a dedicated team of 400 experts specialized in compliance, legal, and investigative matters throughout their organization. These professionals work closely with national security and law enforcement agencies in the United States, as affirmed by Coinbase.
Israeli Authorities Crack Down on Hamas-Linked Crypto Assets
Since the onset of the recent conflict, Israeli authorities have been aggressively seizing digital assets associated with Hamas. The involvement of cryptocurrency in funding attacks on Israel by Hamas militants has cast a shadow over Coinbase’s lobbying efforts in the United States.
According to a report by Berenberg Capital Markets, regulatory actions and the complex political landscape surrounding the Israel-Hamas conflict have led to a more cautious approach regarding Coinbase.
Mark Palmer, the lead analyst at Berenberg, commented, “While Hamas declared last April that it would cease using cryptocurrency for fundraising due to authorities’ ability to trace transactions on blockchain ledgers, recent developments are likely to add more uncertainty to the question of cryptocurrency’s legal status.”
Coinbase’s proactive stance against the illicit use of digital currencies in terror financing is an essential step in addressing the broader concerns associated with cryptocurrencies’ involvement in such activities.
