Hamas Group Stops Bitcoin Donations, What’s Up?

Liputan6.com, Jakarta – The Palestinian Islamic group Hamas said on Thursday, April 27, 2023 it would stop accepting fundraising via bitcoin or other cryptocurrencies.

“This arises out of concern about the safety of donors and to keep them out of harm’s way,” the group said in a statement Yahoo FinanceMonday (1/5/2023).

The group added efforts had been increasing to prevent people and groups from sending bitcoin funds.

Hamas has supported cryptocurrencies as a fundraising method for years, before developing sophisticated tactics to solicit bitcoin donations.

The group does not disclose where its financial resources come from, but leaders frequently cite donations from individuals across the Muslim world as one of its main sources.

Iran has also always been the group’s main financial and military backer, according to officials from both sides.

Policymakers and regulators around the world have for years raised concerns over the illegal use of cryptocurrencies, ranging from money laundering to the financing of terrorism. This is because Bitcoin and other crypto tokens offer a high degree of anonymity, making them attractive to criminals.

However, technological developments that track the movement of cryptocurrencies in blockchain ledgers have made it easier for authorities to identify those behind crypto transfers. Many major crypto exchanges now also run ID checks on clients.

Illegal Crypto Donations

Hamas is designated a terrorist organization by the United States, Britain and the European Union. That means, in the United States for example, it is illegal to provide any form of donation or training to such groups. Financial companies that control related funds are required to report this to the authorities.

In 2020, the US stopped attempts by the military wings of Hamas, al-Qaeda and Islamic State to raise funds through cryptocurrencies, seizing USD 2 million worth of crypto or equivalent to IDR 29.3 billion (assuming an exchange rate of IDR 14,670 per US dollar).