The potential link that the crypto firm Binance maintains in the financing of terrorism still arouses reactions. In this case in the United States, where Congress called on the federal administration to shed light on this allegation. This, by expressing ourselves transparently on certain aspects of this issue.
Congress wants to understand the link between Binance and terrorist financing
The allegation that Binance funds terrorism through cryptos was thought to have died down. But actually, not at all. According to recent information, the issue is generating so many bipartisan positions in the US Congress that the latter has referred the matter to the authorities.
In a joint letter to President Joe Biden and Treasury Secretary Janet Yellen, these parliamentarians called on the American authorities to act. This, by explaining, as quickly as possible, the potential links of Binance with the financing of terrorism.
The letter, made public on Friday November 17, mentions an alarming figure on this issue. More than $134 million was reportedly channeled to Hamas and Palestinian Islamic Jihad, through digital asset platforms, between August 2021 and June 2023.
In this context, legislators wish to obtain comprehensive information on several essential aspects. They want details on crypto wallets linked to terrorist organizations. They also want to know how long these groups’ digital fundraising campaigns have lasted and what action the U.S. government is taking against these illicit assets.
A clarification deemed necessary for questions of transparency
Obviously, the American Congress is absolutely keen to know the extent of the implications of the Binance crypto exchange on this delicate issue of terrorist financing. They demand a response from the federal administration by November 29.
In the letter to the latter, they also proposed a classified briefing if an immediate and detailed response proves difficult. And there is a reason for the pressure that Congress seems to be exerting on American authorities.
In fact, lawmakers emphasize the need for transparency. This, in order to understand how crypto entities like Binance can be involved. A situation which, moreover, would justify clarification on the measures taken to mitigate these risks in the future.
We imagine that this development will probably have consequences. First for the crypto firm Binance which, for several months, has been experiencing difficulties. Then, for the entire crypto ecosystem as a whole, which could face strict regulation related to the fight against illicit financial activities associated with cryptos.
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