PATTERNS OF FINANCIAL CRIMES USING CRYPTOCURRENCIES
Article Sidebar
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution 4.0 International (CC BY 4.0) license, which permits unrestricted use, distribution, and reproduction of the content in any medium, providing that the original author and source are credited.
Main Article Content
Abstract
The cryptocurrency market is rapidly gaining momentum and is becoming an alternative financial platform to the traditional financial trading market. Currently, cryptocurrency is of particular interest to criminals to make illegal profits, such as money laundering, terrorist financing, financing the proliferation of weapons of mass destruction, corruption. The main purpose of the study is to identify information signs that indicate the implementation of illegal financial transactions using cryptocurrencies. Empirical (observation, description) and theoretical (grouping, synthesis, abstraction) research methods were used for this research. According to the results of the study, it is established that the signs of illegal transactions with cryptocurrency are: non-transparent cryptocurrency contracts; encrypted cryptocurrency transactions; impersonal transactions; fragmented systematic transactions into marginal, limited amounts to avoid identification; transactions that do not comply with the approved transaction protocols; currency exchange transactions by unidentified traders; confusing cryptocurrency to other forms of electronic funds in order to withdraw such funds in cash. The authors of the article identify the main agents in the cryptocurrency economy (centralized and decentralized cryptocurrency exchanges, token issuers, distribution services, gaming services, cryptocurrency wallets). The paper describes software products for the identification of illegal cryptocurrency transactions. The results of the study are of practical value to national regulators in strengthening financial stability and combating illegal financial transactions. management of financial institutions to improve the system of counteraction to illegal financial transactions using payment cards, namely the creation of separate bodies for analysis and regulation of fraud in the banking sector, strengthening responsibility for fraud at the legislative level, establishing a single authentication standard for customers, development of open banking.
Article Details
How to Cite
References
Zhao L. (2021). The function and impact of cryptocurrency and data technology in the context of financial technology: Introduction to the issue. Financial Innovation, 7(1) doi:10.1186/s40854-021-00301-w.
Liu, X. F., Ren, H., Liu, S., & Jiang, X. (2021). Characterizing key agents in the cryptocurrency economy through blockchain transaction analysis. EPJ Data Science, 10(1) doi:10.1140/epjds/s13688-021-00276-9.
Bailey, A. M., Rettler, B., & Warmke, C. (2021). Philosophy, politics, and economics of cryptocurrency II: The moral landscape of monetary design. Philosophy Compass, 16(11) doi:10.1111/phc3.12784.
López-Martín, C., Benito Muela, S., & Arguedas, R. (2021). Efficiency in cryptocurrency markets: New evidence. Eurasian Economic Review, 11(3), 403-431. doi:10.1007/s40822-021-00182-5.
Haq, I. U., Maneengam, A., Chupradit, S., Suksatan, W., & Huo, C. (2021). Economic policy uncertainty and cryptocurrency market as a risk management avenue: A systematic review. Risks, 9(9) doi:10.3390/risks9090163
Mahdavi-Damghani, B., Fraser, R., Howell, J., & Halldorsson, J. S. (2022). Cryptocurrency sectorization through clustering and web-scraping: Application to systematic trading. Journal of Financial Data Science, 4(1), 158-179. doi:10.3905/jfds.2021.1.080.
Fang, F., Ventre, C., Basios, M., Kanthan, L., Martinez-Rego, D., Wu, F., & Li, L. (2022). Cryptocurrency trading: A comprehensive survey. Financial Innovation, 8(1) doi:10.1186/s40854-021-00321-6.
Bziker, Z. (2021). The status of cryptocurrency in morocco. Research in Globalization, 3 doi:10.1016/j.resglo.2021.100040.
Widjaja, G. (2021). Cryptocurrency and the role of Indonesian Central Bank. Journal of Legal, Ethical and Regulatory Issues, 24(2), 1-8.
Riley, J. (2021). The current status of cryptocurrency regulation in china and its effect around the world. China and WTO Review, 7(1), 135-152. doi:10.14330/cwr.2021.7.1.06.
Ukwueze, F. O. (2021). Cryptocurrency: Towards regulating the unruly enigma of fintech in nigeria and south africa. Potchefstroom Electronic Law Journal, 24 doi:10.17159/1727-3781/2021/V24I0A10743
Delva Benavides, J. E., & Torres Amaya, F. E. (2021). Legal, tax and accounting treatment of cryptocurrencies in mexico. Global Jurist, doi:10.1515/gj-2021-0061.
Nghiem, H., Muric, G., Morstatter, F., & Ferrara, E. (2021). Detecting cryptocurrency pump-and-dump frauds using market and social signals. Expert Systems with Applications, 182 doi:10.1016/j.eswa.2021.115284.
Teichmann, F. M. J., & Falker, M. -. (2021). Cryptocurrencies and financial crime: Solutions from liechtenstein. Journal of Money Laundering Control, 24(4), 775-788. doi:10.1108/JMLC-05-2020-0060.
Huang, S. (2021). Cryptocurrency and crime. FinTech, artificial intelligence and the law: Regulation and crime prevention. P. 125-143.
Kolesnikova, K., Mezentseva, O., & Mukatayev, T. (2021). Analysis of bitcoin transactions to detect illegal transactions using convolutional neural networks. Paper presented at the SIST 2021 - 2021 IEEE International Conference on Smart Information Systems and Technologies, doi:10.1109/SIST50301.2021.9465983
Dupuis, D., & Gleason, K. (2021). Money laundering with cryptocurrency: Open doors and the regulatory dialectic. Journal of Financial Crime, 28(1), 60-74. doi:10.1108/JFC-06-2020-0113.
Trozze, A., Kamps, J., Akartuna, E. A., Hetzel, F. J., Kleinberg, B., Davies, T., & Johnson, S. D. (2022). Cryptocurrencies and future financial crime. Crime Science, 11(1) doi:10.1186/s40163-021-00163-8.
Ren, B., & Lucey, B. (2022). Do clean and dirty cryptocurrency markets herd differently? Finance Research Letters, 47 doi:10.1016/j.frl.2022.102795.
Akartuna, E. A., Johnson, S. D., & Thornton, A. (2022). Preventing the money laundering and terrorist financing risks of emerging technologies: An international policy delphi study. Technological Forecasting and Social Change, 179 doi:10.1016/j.techfore.2022.121632.
Bailey, A. M., Rettler, B., & Warmke, C. (2021). Philosophy, politics, and economics of cryptocurrency II: The moral landscape of monetary design. Philosophy Compass, 16(11) doi:10.1111/phc3.12784