Gambling Is a Breeding Ground for Terrorism

The European Union voted to ban the use of cryptocurrency payments fearing a surge in terrorism

Briefly, what we are talking about. An agreement between the Council of the European Union and the European Parliament to tighten anti-money laundering rules includes creating a single register of beneficial owners of companies, strengthening controls over cryptocurrency platforms and preventing money laundering through gambling. 

The agreement also provides for strengthening cooperation between national anti-money laundering authorities. The new rules should help improve transparency and prevent the EU financial system from being used for criminal activities.

In addition, the new body will be given the authority to conduct inspections and investigations into financial crimes across multiple jurisdictions.

Let me remind you that this decision is part of a new set of anti-money laundering laws on the continent.

Of course, the rule goes against the right to privacy and financial freedom of people who use cryptocurrency as a means of payment, but who cares? Moreover, from now on, Binance undertakes to provide information on all transactions in the amount of $3,000 or more, since on March 26, the exchange joined the Global Alliance under the Travel Rule from FATF, which obliges crypto operators to disclose sender data, address and account information.

Chainalysis report: an American company specializing in blockchain analysis said that only $450 thousand can be clearly identified as funds used to finance terrorist activities

However, a much larger amount was mentioned in the media - $82 million.

However, Chainalysis emphasizes that “contrary to popular belief, it is not effective to use cryptocurrency to pay for dubious services, since blockchain allows for more detailed tracking of funds than in traditional finance.”

Despite this, official authorities continue to convince that cryptocurrency poses a threat and must be fought against.

However, for some reason, they are silent about the fact that the UK is the leader in gambling in Europe: in 2019, the total income from this industry amounted to 14.3 billion euros. It is followed by Italy and Germany with revenues of €11.9 billion and €11.2 billion respectively. 

Gambling occupies a leading position in money laundering due to the large amount of cash passing through casinos and bookmakers

In the same UK, in 2019 alone, more than 300 cases of money laundering through gambling worth more than 2.3 billion pounds sterling were recorded.

Fines are of particular interest. The largest of these was imposed on LC International Limited, amounting to £14,000,000.00, while smaller warnings were also issued in the amount of £56,700.00.

Out of a total of 22 cases, only seven did not reveal violations in the field of combating money laundering and terrorist financing. This means the average fine imposed by the Gambling Commission was £2.4 million per incident.

As a result, what we have is: gambling brings significant amounts of money to the treasury, but cryptocurrency does not. Betting companies have a clear legal hierarchy and physical presence, which makes it easier to control and manage, but blockchain does not. For some reason, no one is running to close the casino, instead shifting the focus to something else.

“The situation is getting more complicated with cryptocurrencies,” this is how regulators see it. When conducting transactions between crypto wallets, traditional financial institutions are left behind and lose the ability to charge fees or provide services.

As a result, the banking system, which is initially prone to corruption, loses significantly. After all, cryptocurrency tranches can be traced to the last cent. And everything would be fine, but on the path to change there are officials who prefer to preserve the old order and hinder the introduction of new technologies and approaches.

Yes, we may face some periods when everyone will be intimidated; when it will be temporarily difficult; when there may be drops and FUD. But it will not be possible to completely change the situation, because cryptocurrency, one way or another, will remain decentralized.

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