CRYPTOCURRENCIES AND CRIME

Abstract

In the introductory part of the paper, the author briefly explores the emergence of the first cryptocurrency (Bitcoin), which was initially devised for the purpose of securing easier transactions without intermediaries. Criminals soon realised that cryptocurrencies, due to their inherent characteristics, could provide them with anonymity. As other cryptocurrencies (altcoins) emerged, it was necessary to define their conceptual framework. While cryptocurrencies were initially used in illegal sales of narcotics, their application soon spread to a number of other criminal activities. In that context, the author first presents the reasons that led criminals to turn to cryptocurrencies in their financial transactions, and then explains the possible uses of cryptocurrencies in the commission of crime. The central part of the paper provides examples of criminal activities committed by using cryptocurrencies. It is reasonable to expect that, in the future, the use of cryptocurrencies will extend to other criminal activities, which are still unaffected by the trend that has existed for the last ten years.