Cryptocurrencies are a form of digital or virtual currency which have become more and more popular since the Bitcoin, the first cryptocurrency created in 2009. Cryptocurrencies use the distributed ledger technology (DLT) to verify the transactions, which are then added into permanent digital record. The most popular version of this record is blockchain, which is used by Bitcoin. The majority of cryptocurrency exchanges is now subject to Anti-money Laundering and Combating the Financing of Terrorism (AML/CTF) regulations. Financial Action Task Force (FATF) – global supervisor of BPPN/BPFT compliance – has determined guidance according to which virtual asset service providers (VASP) needs to implement the same standards against financial crime which are already implemented in traditional financial institutions (e.g. banks) until June 2020. Cryptocurrencies have become more attractive to the terrorists which see them as a means to collect donations, purchase or sell on darkweb and transfer assets on global level to increase their financial capabilities. Cryptocurrencies are focused on privacy and are succeeding in decentralized financial ecosystem. This allows cyber criminals to avoid financial institutions and their operational tools which are designed to combat financing of terrorism. High rate of profit and instability of the value of cryptocurrencies might lead to its big adoption by the extremist groups which are desperately trying to find a new mechanism of raising funds to maintain their activities.