The Interplay Of Cryptocurrency In Money Laundering And Terrorist Financing: Mechanisms, Challenges, And Global Strategies
- IJLLR Journal
- Dec 11, 2024
- 1 min read
Aswathy N C, LLM, Dept. of Crime and Forensics, The Tamil Nadu Dr. Ambedkar Law University (SOEL), Chennai
Ms. T Vaishali, LLM Scholar & Assistant Professor of Law at The Tamil Nadu Dr. Ambedkar Law University (SOEL), Chennai
Dr. A R Chitra, Assistant Professor of English, SASTRA Deemed to be University, Thanjavur
ABSTRACT
This paper explores the intricate relationship between cryptocurrencies and their function in financing terrorism and money laundering. Digital currencies present unique mechanisms facilitating illegal actions, posing considerable issues for regulators and law enforcement as they gain prominence in the global financial arena. In order to blur transaction histories and make discovery more complex, the study explores several strategies criminals use to manipulate cryptocurrencies, including mixers, privacy coins, and Decentralised Finance (DeFi) platforms. The paper also highlights how regulatory frameworks in other jurisdictions differ, making responding to these issues globally difficult. Through analysing case studies of well- known instances involving cryptocurrency-driven money laundering and terrorist funding, this study emphasises how urgently more vital international cooperation and robust regulatory measures are needed. It also examines how cutting-edge technology like artificial intelligence and blockchain analytics could counter these dangers. Ultimately, this study seeks to clarify the evolving terrain of cryptocurrency-related criminal activity and offer all- encompassing tactics for stakeholders and legislators to safeguard the financial system's stability.
Keywords: Cryptocurrency, Money Laundering, Terrorist Financing, Regulatory Frameworks
