Australian home affairs minister warns of using online payment systems and cryptocurrencies for funding terrorism

Australia’s home affairs minister has warned that online payment systems and cryptocurrencies are increasingly being used to fund terrorism.

In a speech to the “No Money for Terror” conference on Thursday, Peter Dutton warned that digital currencies have become “a key enabler of terror financing.”

According to The Australian report, financial regulators are expected to force Facebook to divulge details about plans for a global cryptocurrency called Libra, after the social media giant failed to reassure officials over the threat it posed to national ­security, banking, consumers and investors.

“Just as the virtual world has become a popular vector for transnational, serious and organized crime, it is likely those who wish to support terrorism will increasingly transact online,” Dutton said.

“The increasing use of digital and cryptocurrencies, stored value cards, online payment systems and crowdfunding platforms provide new channels through which terrorism may be financed.

“As technologies develop and virtual assets proliferate, there will be a growing appeal to use online transactions and cryptocurrencies for financing terrorism. This is a risk we must stay ahead of.”

While Dutton’s speech focused on new-age terrorism funding he also served a reminder that traditional methods such as money-laundering and fraudulent charities remain a significant threat.

“Regardless of the funding mechanism, even small amounts of money placed in the hands of terrorists can facilitate devastating attacks,” he said.

“We must starve these vile individuals and groups of the resources they require to do us harm.”

Source: Xinhuanet