Cryptocurrency And Financial Terrorism: An Emerging Paradox In India
- IJLLR Journal
- Feb 24
- 1 min read
Chandhini T, Christ (Deemed to be University), Bengaluru, India
ABSTRACT
The rapid growth of cryptocurrencies presents a significant challenge in global financial security architecture. In India, particularly the new era of financial innovation and cryptocurrency offers a sophisticated mean of money laundering and financial terrorism. Individuals and Companies uses cryptocurrencies as a medium of exchange. This paper argues that India’s current legal system particularly the Prevention of Money Laundering Act, 2002 is inadequate to talk about the unique, decentralized and pseudonymous nature of cryptocurrency. The Cryptocurrency features make the law enforcement authorities difficult in tracing the transaction. When the new digital payment in cryptocurrency developed namely Bitcoin, the terrorist is the first one who take advantage of digitalization to increase profitability. In cryptocurrency the confidentiality is extremely fragile, decentralized and pseudo-anonymous characteristics makes it easier to do crime. This paper analyzed that a cryptocurrency is a prominent tool for money laundering and terrorist financing because of its anonymous features over owner’s money. This paper evaluates the legal hurdles in prosecuting cross-border crypto transaction linked to terrorist financing. Finally, by suggesting that India must recognize the need for strong regulation to fight cryptocurrency facilitated financial terrorism.
Keywords: Cryptocurrency, Virtual Digital Asset (VDA), Combating the Financing Terrorism (CFT), Digital Transformation.
