Transformation of terrorism from “dynamite to metaverse” and “AK-47 to virtual assets’ is a matter of concern, Union Home Minister Amit Shah said last week. He was speaking at the third ‘No Money for Terror’ (NMFT) Ministerial Conference on the subject of Counter-terrorism Financing.  “There is an increase in the use of virtual assets like cryptocurrency and we need to understand the patterns of these darknet activities and find their solutions,” he added. 

While the government’s skepticism towards digital currency is not new, also thanks to the latest scandal of FTX, Indian players feel that the right set of regulations can further help to bring in transparency. “ Cryptocurrency is extremely transparent, far more so than the traditional cash economy, and this is well documented. Also, cryptocurrency is the worst tool for laundering money,” Rajagopal Menon, vice president, WazirX, a cryptocurrency exchange, told FE Blockchain.

Earlier this October when United Nations (UN)’s counter-terrorism committee (CTC) held a meeting in New Delhi similar remarks were made on how cryptocurrency is funding terrorism. “Terrorist groups who have been excluded from the formal financial system are slowly turning to crypto to fund their heinous activities”, Svetlana Martynova, the countering financing of terrorism coordinator at the United Nations (UN) had said at the time.

Also Read: How is cryptocurrency funding terrorism across the globe

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