Blockchain analytics company Chainalysis has refuted the claims made by anti-crypto politicians that cryptocurrencies are predominantly used for financing terrorism.

Chainalysis, a prominent authority in blockchain analysis, has acknowledged that certain militant groups, such as Hamas, Hezbollah, and the Palestinian Islamic Jihad, do employ cryptocurrency for fundraising, storage, and fund transfers.

On the other hand, the platform emphasized that this constitutes only a minuscule portion of the overall volume of cryptocurrency transactions and a small fraction of illicit activities involving digital currencies.

The report countered overarching measurements and analyses on the use of cryptocurrency by terrorist organizations, highlighting that traditional fiat-based methods, including financial institutions, hawalas, and shell companies, remain the primary channels for financing these groups.

According to Chainalysis, the transparency offered by blockchain technology actually aids in identifying and disrupting the flow of funds for terrorist activities.