EU Aims to Track Even Small Crypto Transactions

The European Union is poised to delve deeper into monitoring cryptocurrency transactions, aiming to scrutinize transactions below €1,000. This initiative follows concerns that terrorist groups deliberately split transactions into smaller sums to evade detection.

Regulators are proposing stricter scrutiny of users on cryptocurrency exchanges, primarily targeting the prevention of terrorist financing. This heightened vigilance stems from global law enforcement's concerns post the HAMAS attack on Israel.

Earlier EU legislation outlined similar provisions, mandating cryptocurrency firms to identify and verify users transferring over €1,000. However, the focus is now shifting towards reevaluating all transactions, irrespective of their size. Officials suspect that terrorists intentionally break transactions into smaller amounts, raising suspicions even with relatively modest sums.

In mid-October, reports surfaced indicating HAMAS as the first terrorist group to actively engage with cryptocurrency. According to TRM analysts, terrorists embraced digital assets as early as 2019.

Analysts concluded that amid the October attack on Israel, members of HAMAS initiated multiple campaigns to raise funds through cryptocurrency. For instance, GazaNow, a group supporting terrorists, organized a fundraiser, reportedly amassing $5,000 within the initial days of the conflict.

Last month, Israeli law enforcement requested the freezing of over 100 accounts on the Binance cryptocurrency exchange. Additionally, they sought information on 200 accounts registered on the platform.

U.S. financial regulators allege that funds held on the crypto platform were linked to HAMAS in the past. The Commodity Futures Trading Commission (CFTC) lawsuit claimed that Binance's top management had been informed about terrorist group transactions as early as 2019.