The House Financial Services subcommittee on digital assets held a hearing to examine the potential for Hamas, a militant group that controls the Gaza strip, to use cryptocurrency for money laundering and terrorism financing. Representatives from the Department of the Treasury, the Securities and Exchange Commission, and the Department of Justice joined the hearing as witnesses to discuss ways to combat Hamas using the digital asset sector for criminal activities.
The witnesses discussed the importance of proper reporting and counter-measures for those illicit actions in the digital asset sector. The SEC witness stated that they take violations of the securities laws seriously, especially as it concerns terrorists and other actors engaging in criminal activities. The Department of the Treasury expressed their efforts in tracking the flow of money through virtual currency, such as identifying those who facilitate the illicit movements and the reward system for the success of those who commit the crime.
Furthermore, the Department of Justice highlighted the importance of international communication and collaboration in preventative measures, such as sharing tips and resources in order to heighten security. It was concluded that cryptocurrency companies must practice vigilance and comply with the applicable anti-money laundering laws, and that the proper data reporting strategies need to be in place to minimize the potential risk of money laundering and terrorist financing.
