For quite some time now, there have been unfounded rumors about the involvement of Bitcoin in terrorist funding. A new report by the UK parliament touches upon the funding of ISIL, and where the money is coming from. It is not surprising to see zero references to Bitcoin whatsoever. Instead, all of the money is coming through traditional channels.
How ISIL Is Getting Its Funding Together
Cutting off the funding of terrorist groups such as ISIL is a top priority for any government in the world. Unfortunately, that is much easier said than done, as there are various ways to move money around the world without raising suspicion. Cash plays an important role for ISIL, as it contributes to 40% of the group’s revenue.
Other forms of income streams for ISIL include extortion, taxation, oil sales, and donations. That being said, it is not as straightforward to exclude the terrorists from foreign exchange auctions either. Particularly in Iraq, where they have a stranglehold on the economy, it will be hard to cut off the access to finances.