FATF flags use of cryptocurrency by far-right groups

The Financial Action Task Force (FATF) released отчет “Ethnically or racially motivated terrorism financing”, containing a section on cryptocurrencies.

According to the document, representatives of far-right groups turned to digital assets after many financial firms refused to process transactions related to extremist activity.

Some such groups used privacy-focused cryptocurrencies, the report notes.

“There is a strong interest in virtual assets among far-right groups and individuals seeking anonymity, especially after access to major payment platforms was blocked,” the document says.

As examples, FATF cites a far-right group in South Africa that created its own stablecoin to fund its activities, and the neo-Nazi organization Nordfront, accepting donations in Bitcoin.

In 2019, FATF issued a document requiring bitcoin exchanges and other crypto-asset service providers to comply with AML/CFT procedures.

In June 2021 the organization said that the majority of countries had not implemented requirements for cryptocurrency companies.

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