The effects of digital currency in supporting terrorist crimes

Abstract

The rapid technological development nowadays, and digital currencies have emerged as one of the most important global financial innovations. These currencies, such as Bitcoin, Ethereum, and Litecoin, represent a decentralized financial system based on blockchain technology (encryption), which ensures confidentiality and security. These currencies offer many benefits, such as quick transfer, low costs, privacy, and other advantages. However, they have been misused by terrorist groups as a means of financing terrorism and money laundering. Whereas the international community has attempted to enact legislation to combat this dangerous problem and called on its members to cooperate effectively to stop it and address its causes. Although Kurdistan Region of Iraq and continues have been exposed to the risks of terrorist crimes of all kinds, resulting in severe and destroy the lives and property of the citizens of the region. The Kurdistan government has considered the crime of financial terrorism a crime punishable upon its commission, but has not regulated the crime of money laundering. Terrorist organizations exploit the relatively new banking system in Iraq, as well as political and security instability, which provides easier opportunities for money transferring and weak observation of financial flows. Therefore, it is important to issue specific legislation to fight this serious problem, taking into account the Iraqi constitution and international standards that guarantee the protection of rights and freedoms.