How Terrorists Use Cryptocurrency in Southeast Asia

The first transactions involving cryptocurrencies have been made recently by Islamic State-linked terrorist networks in the Philippines.

Terrorist Exploitation of Cryptocurrency in Southeast Asia

IS has long been interested in cryptocurrency. In a high-profile case from 2015, a 17-year-old in the U.S. state of Virginia was jailed for providing IS supporters online with advice on using the virtual currency Bitcoin to conceal financial donations.

Propensity of Militants Using Cryptocurrency

Bahrun Naim had advised his followers to launder money through several cryptocurrency accounts, before it eventually reached the recipient militant’s own Bitcoin wallet.

Compliance With the Financial Action Task Force

In June 2019, the Financial Action Task Force – the global money laundering and terrorist financing watchdog – outlined a set of guidelines to govern the use of cryptocurrency.

What’s Next?

Militants in the region will likely continue to experiment with cryptocurrency to fund their activities.

This article was written by V. Arianti and Kenneth Yeo Yaoren

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