The Impact of Misuse of Cryptocurrencies in Combating Money Laundering and Terrorist Financing
The Impact of Misuse of Cryptocurrencies in Combating Money Laundering and Terrorist Financing

Summary/Abstract: Cryptocurrencies are designed as a secure form of financial transaction via the Internet. However, the development of information and communication technology has created new space for their misuse in criminal purposes, especially in the area of money laundering and terrorist financing. Bearing in mind the complexity in conducting financial transactions via the Internet, the paper in the first part deals with most important legal challenges regarding the misuse of cryptocurrencies through money laundering and terrorist financing. Furthermore, in the second part of the paper, the most relevant crime detection methods are considered. Finally, the practical challenges at the level of the protection of financial transactions against their misuse in criminal purposes, have created a need for normative regulation of cryptocurrencies, which is why last part of this paper includes the analysis of the relevant legal framework in this area at international, European or national level. In the concluding remarks, the key recommendations for better legal protection of the cryptocurrency transactions are provided, since it is noticed that although the cryptocurrency financial transaction system has created opportunities for relatively secure financial operations in a digital environment, there is still space for improvement.

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