Cryptocurrency is digital money with no banks and has changed how people and companies deal with their money. Nevertheless, recent findings have indicated that some extremist groups use crypto as a source of funding for their activities. Recently, Chainalysis reported a rise in crypto donations to these extremist groups, this time in Europe. Donations worldwide have gone down, but Europe is seeing a big rise in these contributions.
The Rise of Crypto Donations to Extremist Groups.
According to the Chainalysis report, from 2022 to 2024, almost half of the cryptocurrency donations related to extremist groups have originated from Europe. Although North America still remains the largest, accounting for $20 million, it is significantly trailed by Europe at $1.9 million.The report says that extremist groups are using cryptocurrencies because they provide privacy, helping them avoid regular financial systems and anti-terrorism rules.
Cryptocurrency donations to extremist groups
— Raytodd (@Raytodd14902895) January 28, 2025
On 23 January, Chainalysis published an article linked to its upcoming 2025 Crypto Crime Report. It says donations to white supremacism, nationalism, and anti-Semitism grow across Europe.https://t.co/iRHx2OzIW7 pic.twitter.com/zkBJt2qfUU
Why Are Crypto Donations Increasing?
There are many reasons that prove why crypto donations are on the rise. One is that extremist groups use cryptocurrencies because they provide privacy and are difficult for the authorities to trace. Also, elections and other such events may create a feeling of passion within people to donate to these groups. Coupled with the ease of sending crypto around the world, these factors have made it easier for extremist groups to raise money.
Which groups are seeing the most support?
The report observes a sharp increase in donations to various types of extremist groups, including:
White Nationalist Groups (270% increase)
Nationalist Groups (164% increase)
Conspiracy Groups (70% increase)
Anarchist Groups (35% increase)
Antisemitic Groups (22% increase)
This means that more people are donating, and the donations are getting bigger.
How Do Extremist Groups Evade Regulations?
While governments and financial institutions work to cut off these activities, extremist groups have evolved. Many are using the dark web or the privacy-focused cryptocurrency, Monero, to go undetected. Others even avoid public donations by privately sending crypto addresses to their supporters.
Conclusion
A significant rising challenge for regulators and policymakers in Europe is crypto donations to extremist groups. As cryptocurrencies provide many advantages, they also raise some concerns about their negative misuse. It is only proper that governments, financial institutions, and the crypto community continue to cooperate in preventing the use of crypto for funding extremism while preserving its legitimate uses.
