Crypto Currency Regulation and Law Enforcement Perspectives (original) (raw)
Related papers
Policing Bitcoin: Investigating, Evidencing and Prosecuting Crimes Involving Cryptocurrency
2017
POLICING BITCOIN: INVESTIGATING, EVIDENCING AND PROSECUTING CRIMES INVOLVING CRYPTOCURRENCY Cryptocurrencies have increasingly become a common method of value exchange in a number of types of criminal activity; notably in May 2017 the NHS was crippled by a global cyber-attack whereby Ransomware was utilized to demand payment for the decryption of encrypted files in bitcoin. This collaborative project has brought together a variety of experts from different disciplines and practices to explore the challenges posed by criminal use of cryptocurrency with regard to the investigation, production of conclusive evidence of wrongdoing, and prosecution of offenders.
Cryptocurrency May Prove Financial Crime: A Conceptual Analysis
2023
Despite the rise in Bitcoin scams, there is a lack of thorough research on the subject. Sophisticated scammers and money launderers can take advantage of Bitcoin mixing services and exchanges. Bitcoin mixing services will send more coins to the customer's address after deducting the mixing cost. The frequency and amount of payments/fees may seem unpredictable, but this is the reality. Criminals use bitcoin mixing services to disguise the source of lost profits and pay securely through cryptocurrency exchanges for anonymous use. Bitcoin's normative unpredictability and organizational opacity attract people with shady intentions, such as supporting rebels or buying drugs. The results of this scoping study show that investigations into cryptocurrency fraud are increasing in scope and depth, but are in the early stages of examining future concerns and circumstances.
Crypto-Assets Illicit Activities: Theoretical Approach with Empirical Review
International E-Journal of Criminal Sciences, 2022
Transnationality, enabled by global processes and the rapid development of the Internet, has led to the creation of new dynamics of criminal activities, where cyberspace becomes a place, goal and mean of committing criminal activities. The aim of this paper is to present criminal activities related to crypto-assets in a coherent and concise way. The misuse of crypto-assets will be investigated in a systematic way, especially from the perspective of financial fraud and in the context of white-collar crime. The paper will present the characteristics of cryptocurrencies that make them suitable for criminal activities. The empirical analysis will explore the role of cryptocurrencies within traditional criminal activities but also within cyber-dependent crimes. This paper will contribute to the theoretical perspective of crypto-assets abuse and the taxonomy of criminal acts related to crypto-assets.
Crime, Law and Social Change, 2018
Crypto-coins (CCs) like Bitcoin are digitally encrypted tokens traded in peer-to-peer networks whose money laundering potential has attracted the attention of regulators, firms and the wider public worldwide. This article assesses the effectiveness of the global anti-money laundering regime in balancing both the challenges and opportunities presented by these novel ‘altcoins’. Two main arguments are advanced. First, the implications that crypto-coins presently pose for global anti-money laundering efforts stem less from the threats of their illicit uses as digital currencies and more from the opportunities presented by their underlying blockchain technologies. Second, despite several shortcomings, the risk-based approach pursued by the Financial Action Task Force (FATF) strikes an effective balance between the existing threats and opportunities that crypto-coins currently present. Rather than a conclusive evaluation however this article stresses the need for continual monitoring and investigation of the wider ethical implications raised by CCs for global efforts to combat money laundering in an era of rapid technological change.
Corporate Law & Governance Review, 2023
The purpose of this paper is to examine the role of cryptocurrency infacilitating money laundering and identify different methods andservices that send funds through numerous addresses or businesses toobscure their origins using cryptocurrency. The methodology forconducting this research is qualitative. A literature review that involvesa systematic and rigorous approach to identifying, analyzing, andsynthesizing existing research on the use of cryptocurrency asa money laundering instrument has been taken into consideration.We identified in the first selection more than 150 research paperspublished between 2002 and 2021. Our results show thatcryptocurrency is used in money laundering schemes, includingthe purchase of cryptocurrencies by criminal networks using illicitproceeds and the use of cryptocurrencies to transfer funds.The biggest issue facing virtual currency currently is that the sameattributes that attract legitimate users, such as anonymity, as well asspeed and global reach, also attract criminals. Money laundering hashad devastating social implications for societies. Our research helps tofocus attention on the problems of using cryptocurrency in moneylaundering practices and possible interventions by the authorities inthe form of regulation. (PDF) THE NEW MONEY LAUNDERING MACHINE THROUGH CRYPTOCURRENCY: CURRENT AND FUTURE PUBLIC GOVERNANCE CHALLENGES. Available from: https://www.researchgate.net/publication/373440103\_THE\_NEW\_MONEY\_LAUNDERING\_MACHINE\_THROUGH\_CRYPTOCURRENCY\_CURRENT\_AND\_FUTURE\_PUBLIC\_GOVERNANCE\_CHALLENGES [accessed Aug 28 2023].
Cryptocurrencies and future financial crime
Crime Science, 2022
Background Cryptocurrency fraud has become a growing global concern, with various governments reporting an increase in the frequency of and losses from cryptocurrency scams. Despite increasing fraudulent activity involving cryptocurrencies, research on the potential of cryptocurrencies for fraud has not been examined in a systematic study. This review examines the current state of knowledge about what kinds of cryptocurrency fraud currently exist, or are expected to exist in the future, and provides comprehensive definitions of the frauds identified. Methods The study involved a scoping review of academic research and grey literature on cryptocurrency fraud and a 1.5-day expert consensus exercise. The review followed the PRISMA-ScR protocol, with eligibility criteria based on language, publication type, relevance to cryptocurrency fraud, and evidence provided. Researchers screened 391 academic records, 106 of which went on to the eligibility phase, and 63 of which were ultimately an...
Legal Remarks on the Overarching Complexities of Crypto Anti-Money Laundering Regulation
Revista Juridica
Objective:The paper analyzes money laundering through crypto-assets and offers a legal perspective on how this new technology can be used to commit these felonies. The study intends to shed light on the matter, helping to visualize how future anti money laundering – AML regulation should focus on tackling crypto criminal activity effectively. Methodology: The research adopts an inductive approach, bibliographic and documental research technique, with an exploratory and propositional methodological objective. Results: The paper proposes the following framework of anti-money laundering principles for crypto-focused action: transnational approach for AML action; going beyond basic gatekeeper compliance approach, considering the lack of structural chokepoints in a blockchain protocol; private-sector cooperation and clear AML standards; usage of tracking and reverse-engineering anonymization techniques for the tracing of crypto transaction history; and adoption of a global blacklist for ...
Legal Protection of Cryptocurrency Users Against Cybercrime Attacks
Journal of Social Research, 2023
The medium of exchange can be any object that can be accepted by everyone in society in the process of exchanging goods and services. Long before knowing money, humans had made transactions using barter practices, that is, the exchange of goods and/or services for the desired goods and/or services. In the preparation of this research, a normative juridical approach where approach is carried out based on the main legal material by examining theories, concepts, legal principles, and laws and regulations related to this research. Cryptocurrency assets don't just impact people who mine or trade crypto. It turns out that anonymous platforms that run crypto are also increasingly associated with cybercrime. A recent study from Interisle Consulting Group revealed that phishing attempts related to cryptocurrencies grew 257 percent compared to last year (compared to a 61 percent increase in phishing attacks overall), especially for attacks on wallets and exchanges. The rapid development of information and communication technology makes the journey of the development of crime in the virtual and digital world (cybercrime) sophisticated and complex.
Cryptocurrency in transnational offenses: criminal and civil legal aspects
Revista Amazonia Investiga, 2021
The emergence of digital technologies contributed to the emergence and rapid development of digital commerce, and at the same time, the number of electronic payments, the use of digital and virtual currencies increased. The article presents an analysis of the legal nature of such a financial instrument as cryptocurrency, characterizes the distinctive features, highlights the advantages and disadvantages. The purpose of the work is to consider the regulatory legal position of cryptocurrency in the modern world, to highlight the legal practice in cases of the circulation of cryptocurrency, to study the role of cryptocurrency in transnational offenses, to explore possible options for combating cybercrime, which is carried out using the use of cryptocurrency. The methodology of the work is represented by a set of methods and techniques, operations that are used to study the topic and achieve the set goal, namely: hermeneutic, historical, extrapolation, comparative-legal, comparison and ...
LEGAL REMARKS ON THE OVERARCHING COMPLEXITIES OF CRYPTO ANTI-MONEY LAUNDERING REGULATION (2019)
Revista Jurídica Unicuritiba, 2019
Objective: The paper analyzes money laundering through crypto-assets and offers a legal perspective on how this new technology can be used to commit these felonies. The study intends to shed light on the matter, helping to visualize how future anti-money laundering – AML regulation should focus on tackling crypto criminal activity effectively. Methodology: The research adopts an inductive approach, bibliographic and documental research technique, with an exploratory and propositional methodological objective. Results: The paper proposes the following framework of anti-money laundering principles for crypto-focused action: transnational approach for AML action; going beyond basic gatekeeper compliance approach, considering the lack of structural chokepoints in a blockchain protocol; private-sector cooperation and clear AML standards; usage of tracking and reverse-engineering anonymization techniques for the tracing of crypto transaction history; and adoption of a global blacklist for crypto- asset prefixes, preventing money laundering integration. Contributions: The study addresses a topic that is still unfamiliar in the academic world due to its innovation and complexity, as well as elaborates a set of principles to combat money laundering with crypto-assets that could be of great value to companies and financial institutions.