Covering e-currencies not backed by physical assets
New electronic and online payment methods and digital currencies like Bitcoin could provide a better way for terrorists to fund their activities without detection, according to a report from the Australian Transaction Reports and Analysis Centre.
For that reason, Australia may consider regulating these methods under the country’s anti-money laundering and counter-terrorism statutes.
According to the Sydney Morning Herald, despite its claims Austrac has no evidence that the Bitcoin is actually used for funding terrorist groups. Nevertheless, the report proposes that anti-money laundering and counter-terrorism regulations in Australia be revised to cover such currencies. It recommended that the definition of e-currency include virtual currencies that aren’t backed by a physical asset, including the Bitcoin and the Ether.
Australian Justice Minister Michael Keenan has drafted a bill that would amend the Anti-Money Laundering and Counter-Terrorism Finance Act to cover and regulate digital currencies.
