The United Nations (UN) is concerned about the growing use of digital platforms by the Islamic State (IS) to finance its terrorist activities.

Transactions through electronic wallets make terrorist organizations better able to financially support their activities without it being possible for investigators to trace movements. There are, for example, cases in which it becomes possible to carry out financial transactions anonymously.

In Somalia, the activities generate around 360 thousand dollars every month. Last year, IS received around 2.5 million dollars from Afghanistan alone. Around 80% of these funds were sent from Western countries using decentralized blockchain technology.

These considerations can be found in a UN report cited by BloombergThe report, which points to the fact that ISIS is working to make its cryptocurrencies subject to Sharia law. Under Sharia law, Muslims are not allowed to profit from interest, pork sales or so-called sinful actions linked to gambling, alcohol and pornography.

"The increasing use of digital platforms such as cryptocurrency exchanges, e-wallets and stablecoins among terrorist groups to raise and transfer funds around the world is a growing concern... Terrorist groups also provide their associates with detailed instructions on how to transfer money through cryptocurrencies and have established specialized channels such as CryptoHalal and Umma Crypto on the Telegram messaging app," it read.

While cash couriers and hawala - a traditional money transfer system - are the preferred methods for obtaining funding in conflict areas, Islamic State "has purposefully migrated to cryptocurrencies and online payment systems", which could become increasingly "widespread and significant".

Although the Islamic State no longer controls the vast territory it controlled in Iraq and Syria a decade ago, the geographical reach of its affiliates has extended from Mozambique to Afghanistan. (Image: UN)