Terrorism financing is a global phenomenon that not only threatens the security of the states but also undermines the economic development and economic stability and therefore, it is the need of the hour to curb the funding of such organization. The terrorist organizations are directly or indirectly linked to organized criminal groups that engage in the funding of purchase of arms, bombs, narcotics etc. without which the terrorist groups possible cannot function. The track kept by the CTF(Counter Terrorism Finance) on the flow of money through bank accounts reduce the terrorist’s access to fiat(the government issued) or the centralized flow of funds and this has raised serious concerns about the use of crypto-currencies such as bit coin to finance their activities. This report focuses on two main points-firstly, how the crypto-currencies are used to finance the terrorist organizations and the international laws which regulate such transactions and secondly, the requirement of criminalization of such activities in India. In this report, we will also analyze the new and future properties of crypto-currencies and what impact can it have on terrorist organizations in the future as it still a developing software. In order to answer these questions, extensive literature review shall be conducted along with scholarly activities and we aim to study the similarities and the differences among different terrorist groups with respect to their finance and if there is a potential for crypto-currencies to finance their operations whether the properties of such currency makes it more viable to be misused along with its legal implications in variety of jurisdictions.

Keywords- Terrorism, Crypto-currencies, Finance, Organized Crime, Funding.

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