Report of the Royal United Services: the use of bitcoin financing of terrorism is exaggerated

Report of the Royal United Services: the use of bitcoin financing of terrorism is exaggerated

From the British defense and security think-tank, the Royal United Services Institute (RUSI) a new report shows, to sponsor terrorism by bitcoin financing is extremely exaggerated.

“Encryption money as a special threat is a misleading impression”

RUSI consultant DavidCarlisle said, many people are beginning to realize that bitcoin may be used for terrorist financing tools, but excessive reaction may stifle the new financial technology development important”. He pointed out that the money is used for encryption rarely terrorism cases. However, for terrorist activities using virtual currency may have many government action.

He said:

The encrypted treated money creates a misleading impression as a special kind of threat, bitcoin has no other traditional financial products are more vulnerable to terrorism control.

A member of the RUSI, it is unclear whether the money will be used for encryption of terrorist financing. Carlisle consultant explained that the terrorists have a large number of existing financing financing flow, no drying phenomenon”. In addition, another RUSI report shows that some terrorist organizations are using small molecular financial services including student loans, payday loans, cash and welfare.

The traditional financial services is more difficult than bitcoin tracking

According to the bitcoin home to Carlisle consultant to understand the use of the traditional media communication, law enforcement departments investigate terrorist difficult, contrary to other encryption currency bitcoin is not completely anonymous, because most of the block chain is open.

Carlisle consultant’s report also explained that the encryption currency is not necessarily a bastion of impermeable, bitcoin is the most widely used encryption currency, and relies on the public ledger blockchain – record transactions, law enforcement agencies, there are many ways to find illegal activities of bitcoin.

“Countries should adopt a sensible approach”

Carlisle believes that encryption currency is a kind of innovative power, “at this early stage of encryption currency history, overreaction and panic will be misleading”. The report explains that bitcoin can reduce the cost of traditional payment providers, and to provide better financial inclusive citizens of the world. The RUSI report said: “therefore, virtual currency provides a test case for the government, the use of technological innovation, but also has not formed the financial crime risk management.”

Finally, Carlisle consultants summarized, countries should adopt a sensible approach, validity of the new regulations should spend time monitoring and assessment, and then take further action.

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