The European Union's law enforcement agency, Europol, has stated, in its recently published report, that the use of Bitcoin in financing terrorist activities has not been confirmed.
"Despite third party reporting suggesting the use of anonymous currencies like Bitcoin by terrorists, there is no evidence however of IS-financing networks in existence."
Despite the clear conclusion reached in this report, another EU bureaucracy arm, the European Commision, has only just come out with a comprehensive package to tackle "terrorist financing". It seems this proposal is more about tightening capital controls than "fighting terrorism," as digital currency economy accounts for only a tiny fraction of global money transfers.
"To prevent their abuse for money laundering and terrorist financing purposes, the Commission proposes to bring virtual currency exchange platforms under the scope of the Anti-Money Laundering Directive, so that these platforms have to apply customer due diligence controls when exchanging virtual for real currencies, ending the anonymity associated with such exchanges," the EC press release states.
Read more:
http://cointelegraph.com/news/terrorists-not-using-bitcoin-politicians-want-to-regulate-it-anyway 
