Legislative Regulations to Prevent Terrorism and Organized Crime from Using Cryptocurrencies and Its Effect on the Economy and Society

Forthcoming, Legal Impact on the Economy: Methods, Results, Perspectives, (eds. Vaypan, Egorova) Moscow, 2018

12 Pages Posted: 9 Dec 2017 Last revised: 16 Feb 2018

See all articles by Stephan Breu

Stephan Breu

Johann Heinrich Pestalozzi Christian University Inc.; Kutafin Moscow State Law University; Universidad Complutense de Madrid - Grupo CONCILIUM; Swiss Centre for International Humanitarian Law; Legal Forum Cannes

Theodor G. Seitz

Swiss Centre for International Humanitarian Law

Date Written: November 27, 2017

Abstract

First it has to be stated that Cryptocurrencies are mostly used for legal transfers between legitimate partners and are becoming more and more popular in our society. Any heavy regime of new regulations would make all transactions costlier and less convenient. Such negative economic impact is opposing the need of monitoring the financing structures of organized criminal and terrorist organisations. With the increasing importance of cryptocurrencies, a completely new field of complex problems is arising through the implied anonymity and complexity or sheer impossibility to track transfers in the dark net. As regulations in this new financial market will be difficult to enforce, it is necessary to establish international cooperation and capacity building to implement some possibilities for law-enforcement and intelligence entities to monitor the illegal parts of the capital flowing in these systems. To solve this situation, the focus should lie on the attempts to make the risk of detection of such transfers higher for the parties involved. Without interfering too strongly with the new financing system developing, this process asks for improved compliance and cooperation on all levels and capacities.

Keywords: financing, regulations, compliance, cryptocurrencies

Suggested Citation

Breu, Stephan and Seitz, Theodor G., Legislative Regulations to Prevent Terrorism and Organized Crime from Using Cryptocurrencies and Its Effect on the Economy and Society (November 27, 2017). Forthcoming, Legal Impact on the Economy: Methods, Results, Perspectives, (eds. Vaypan, Egorova) Moscow, 2018, Available at SSRN: https://ssrn.com/abstract=3081911

Stephan Breu (Contact Author)

Johann Heinrich Pestalozzi Christian University Inc.

13727 SW 152 Street #753
Miami, FL 33177
United States
7865286035 (Phone)

Kutafin Moscow State Law University ( email )

Sadovaya Kudrinskaya, 9
Moscow, 123995
Russia

Universidad Complutense de Madrid - Grupo CONCILIUM

Carretera de Humera s/n
Madrid, Madrid 28223
Spain

Swiss Centre for International Humanitarian Law ( email )

Seefeldstrasse 283
Zürich
Switzerland
+41-43-5005100 (Phone)

Legal Forum Cannes ( email )

c/o Grand Hotel
La Croisette
Cannes
France

Theodor G. Seitz

Swiss Centre for International Humanitarian Law ( email )

Seefeldstrasse 283
Zürich
Switzerland

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
534
Abstract Views
1,466
rank
57,113
PlumX Metrics