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Abuse of Cryptocurrency to Funding International Terrorism Activities
Corresponding Author(s) : Andhika Tegar Wardhana
Proceedings Universitas Muhammadiyah Yogyakarta Undergraduate Conference,
Vol. 1 No. 1 (2021): Engaging Youth in Community Development to Strengthen Nation's Welfare
Abstract
Terrorist organizations began to adjust themselves with the development of information and communications technology, especially in their efforts to finance their activities. Cryptocurrency is one of the latest advancement in financial technologies which is potentially support their actions. Even, it has already actualized in some cases. This research aims to examine what underlies terrorist organizations to start using cryptocurrency and to find forms of its recent activities and its further possibilities. This research uses qualitative approach through examining some sample cases and tries to extrapolate it into larger phenomena. The data obtained in the form of secondary data, namely data from books, articles, academic papers, journals, news, as well as electronic media. This research applies the theory of international crime to frame that terrorist organizations are illegal entities, theory of disruptive technology to describe the nature of cryptocurrency as a new form cyber-based financial technology, and theory of the diffusion of innovation to explain why in the recent internet era, cryptocurrency has a large potential to attract financial investments globally. This work found that terrorist organizations has been starting to use cryptocurrency to finance their activities based on its anonymous and less-regulated natures, both are delivering a new challenge of cybercrimes beyond the conventional scrutiny in finance and banking transfer, as well as counterattacks toward money counterfeit and money laundering.
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- Abutaleb, Y., & Cooke, K. (2016, June 6). Extremists Among Us: A teen’s turn to radicalism and the U.S. safety net that failed to stop it. Retrieved from Reuters Investigates: https://www.reuters.com/investigates/special-report/usa-extremists-teen/
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- Brown, S. D. (2016, July 25). Cryptocurrency and criminality: The Bitcoin opportunity. The Police Journal: Theory, Practice and Principles, 327-339. doi:https://doi.org/10.1177/0032258X16658927
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- Charles, B. S. (2014, October 29). ISIS. Are they Using Bitcoins to Fund Criminal Activities? Retrieved from Security Intelligence: https://securityintelligence.com/isis-are-they-using-bitcoins-to-fund-criminal-activities/
- Chauhan, N. (2020, October 23). IS operative caught in Delhi used Bitcoins to fund terrpr. Its India's first: NIA. Retrieved from Hindustan Times: https://www.hindustantimes.com/india-news/nia-charge-sheet-alleges-bitcoins-used-by-is-operatives-to-fund-terror-activity/story-1qVgzJ5Ipj3t2DCrPmWpvO.html
- Chohan, U. W. (2017, September 20). Assessing the Differences in Bitcoin & Other Cryptocurrency Legality across National Jurisdictions. Retrieved from SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3042248
- Coinvestasi. (2018, September 3). Proof-of-Work vs Proof-of-Stake: Panduan Dasar Mining. Retrieved from Coinvestasi: https://coinvestasi.com/belajar/proof-of-work-vs-proof-of-stake-panduan-dasar-mining/
- Fanusie, Y. (2016, August 24). The New Frontier in Terror Fundraising: Bitcoin. Retrieved from The Cipher Brief: https://www.thecipherbrief.com/column_article/the-new-frontier-in-terror-fundraising-bitcoin
- Fanusie, Y. (2018, 7 September). Survey of Terrorist Groups and Their Means of Financing. Retrieved from https://financialservices.house.gov/uploadedfiles/09.07.2018_yaya_fanusie_testimony.pdf
- Freeman, M. (2011). The Sources of Terrorist Financing: Theory and Typology. Studies in Conflict & Terrorism, 34, 461-475. doi:10.1080/1057610X.2011.571193
- Friana, H. (2021, Februari 26). Uang Digital Bank Sentral, Upaya BI Bendung Bitcoin. Retrieved from CNN Indonesia: https://www.cnnindonesia.com/ekonomi/20210226062635-78-611113/uang-digital-bank-sentral-upaya-bi-bendung-bitcoin
- Hankin, A. (2019, June 25). Bitcoin Pizza Day: Celebrating the $80 Million Pizza Order. Retrieved from Investopedia: https://www.investopedia.com/news/bitcoin-pizza-day-celebrating-20-million-pizza-order/
- Harman, D. (2015, January 29). U.S.-based ISIS Cell Fundraising on the Dark Web, New Evidence Suggests. Retrieved from Haaretz: https://www.haaretz.com/.premium-isis-uses-bitcoin-for-fundraising-1.5366305
References
Abutaleb, Y., & Cooke, K. (2016, June 6). Extremists Among Us: A teen’s turn to radicalism and the U.S. safety net that failed to stop it. Retrieved from Reuters Investigates: https://www.reuters.com/investigates/special-report/usa-extremists-teen/
Arianti, V., & Yaorren, K. Y. (2020, June 30). How Terrorists Use Cryptocurrency in Southeast Asia. Retrieved from The Diplomat: https://thediplomat.com/2020/06/how-terrorists-use-cryptocurrency-in-southeast-asia/
Bauer, K. (2018, September 7). Survey of Terrorist Groups and Their Means of Financing. Retrieved from washingtoninstitute.org website: https://www.washingtoninstitute.org/media/1321
Bowbrick, S. (2003, February 25). Past Currency. Retrieved from The Guardian: https://www.theguardian.com/technology/2003/feb/25/comment.comment
Bray, J. (2016, August). Anonymity, Cybercrime and the Connection to Cryptocurrency. Retrieved from ProQuest: https://www.proquest.com/openview/6b6b90e3ec22811be1f2cf6f6a060a52/1?pq-origsite=gscholar&cbl=18750
Brown, S. D. (2016, July 25). Cryptocurrency and criminality: The Bitcoin opportunity. The Police Journal: Theory, Practice and Principles, 327-339. doi:https://doi.org/10.1177/0032258X16658927
Cahya, K. D. (2015, October 29). Teroris Peras Mall Alam Sutera dengan Minta Tebusan Bitcoin. Retrieved from Kompas: https://megapolitan.kompas.com/read/2015/10/29/16441531/Teroris.Peras.Mall.Alam.Sutera.dengan.Minta.100.Bitcoin
Chaliand, G., & Blin, A. (Eds.). (2007). The History of Terrorism From Antiquity to Al Qaeda. (E. Schneider, K. Pulver, & J. Browner, Trans.) Berkeley and Los Angeles: University of California Press, Ltd.
Charles, B. S. (2014, October 29). ISIS. Are they Using Bitcoins to Fund Criminal Activities? Retrieved from Security Intelligence: https://securityintelligence.com/isis-are-they-using-bitcoins-to-fund-criminal-activities/
Chauhan, N. (2020, October 23). IS operative caught in Delhi used Bitcoins to fund terrpr. Its India's first: NIA. Retrieved from Hindustan Times: https://www.hindustantimes.com/india-news/nia-charge-sheet-alleges-bitcoins-used-by-is-operatives-to-fund-terror-activity/story-1qVgzJ5Ipj3t2DCrPmWpvO.html
Chohan, U. W. (2017, September 20). Assessing the Differences in Bitcoin & Other Cryptocurrency Legality across National Jurisdictions. Retrieved from SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3042248
Coinvestasi. (2018, September 3). Proof-of-Work vs Proof-of-Stake: Panduan Dasar Mining. Retrieved from Coinvestasi: https://coinvestasi.com/belajar/proof-of-work-vs-proof-of-stake-panduan-dasar-mining/
Fanusie, Y. (2016, August 24). The New Frontier in Terror Fundraising: Bitcoin. Retrieved from The Cipher Brief: https://www.thecipherbrief.com/column_article/the-new-frontier-in-terror-fundraising-bitcoin
Fanusie, Y. (2018, 7 September). Survey of Terrorist Groups and Their Means of Financing. Retrieved from https://financialservices.house.gov/uploadedfiles/09.07.2018_yaya_fanusie_testimony.pdf
Freeman, M. (2011). The Sources of Terrorist Financing: Theory and Typology. Studies in Conflict & Terrorism, 34, 461-475. doi:10.1080/1057610X.2011.571193
Friana, H. (2021, Februari 26). Uang Digital Bank Sentral, Upaya BI Bendung Bitcoin. Retrieved from CNN Indonesia: https://www.cnnindonesia.com/ekonomi/20210226062635-78-611113/uang-digital-bank-sentral-upaya-bi-bendung-bitcoin
Hankin, A. (2019, June 25). Bitcoin Pizza Day: Celebrating the $80 Million Pizza Order. Retrieved from Investopedia: https://www.investopedia.com/news/bitcoin-pizza-day-celebrating-20-million-pizza-order/
Harman, D. (2015, January 29). U.S.-based ISIS Cell Fundraising on the Dark Web, New Evidence Suggests. Retrieved from Haaretz: https://www.haaretz.com/.premium-isis-uses-bitcoin-for-fundraising-1.5366305