According to a document discovered by Reuters, the EU intends to ban Bitcoin and all forms of anonymous online payments in an effort to curb terrorist financing.
EU countries are planning to ban all virtual currencies and any form of anonymous online payments, even via prepaid cards, following the recent tragic events in Paris.
A crucial meeting will take place in Brussels with EU Justice and Home Affairs ministers to discuss measures that will block all forms of funding to ISIS.
The document will urge the European Commission to propose measures to “strengthen controls on non-bank payment methods such as electronic/anonymous payments and virtual currencies and transfers of gold and precious metals with prepaid cards,” the document says. EU ministers also plan to more effectively curb the illicit trade in cultural goods.
Bitcoin is the most popular virtual currency and authorities suspect that ISIS was using it to quickly transfer money around the world.
Jennifer Shasky Calvery, head of the US Treasury Department's Bureau of Economic Crimes, which deals mainly with money laundering and terrorist financing, explained that Bitcoin and virtual currencies in general make it easier for criminals, including terrorists.
Intelligence agencies and security experts are aware that members of terrorist organizations, including ISIS, are exploring every possibility of transferring money to their soldiers stationed in Western countries.
A continuous flow of small amounts of money could be transferred instantly to many ISIS member accounts around the world. Micropayments could be made through different channels such as PayPal-like systems or with virtual currencies such as Bitcoin.
So we await the decision of the meeting and whether the EU will actually proceed with the ban.
