Bitcoin might face stricter regulation in the seven most powerful countries of the West. The reason is the suspicion that bitcoin is widely used by ISIL, says an article in Der Spiegel.

The regulation of financial technology, including cryptocurrencies, has been a subject of a private discussion of the G7 finance ministers during the G20 summit in Antalya, Turkey.

The reason for supposed crackdown on cryptocurrencies is their supposed role in funding of the Islamic State, the organization behind the recent terrorist attacks in Paris. On 17 November the European Commission issued a memo, stating that bitcoin would be subject to special scrutiny.

The Ghost Security Group (GhostSec), an anti-terrorist hacker team that traces and prevents terrorist online activity, has recently declared it discovered an account allegedly connected with ISIL, containing the bitcoin equivalent of $3 million. However, GhostSec says the Islamic State does not use bitcoin extensively: “it only accounts for 1% to 3% of their total income and in no way was linked to the Paris attacks”.

The German Finance Ministry did not comment, on the grounds that G7 inner dealings were confidential.

Alexey Tereshchenko