Are cryptocurrencies used in Serious Organised Crime and terrorism?

The UK’s intelligence agencies have asked Europe’s largest cryptocurrency exchange, Bitstamp, to hand over information on at least some of its customers. The news suggests that bitcoin and other cryptocurrencies are being used in serious organised crime and terrorism, as well as domestic crime.

Why do illicit groups request and receive funding via cryptocurrency?

Illicit groups routinely request and receive funding via cryptocurrency because of its anonymity, lack of trackability and inaccessibility by regulatory bodies. Even a year ago, investigators and governments struggled to identify and trace transactions on cryptocurrency exchanges.

Are cryptocurrencies a threat to the financial system?

The potential threat that cryptocurrencies pose to the financial system is significant: in the first five months of 2020 alone, research suggests that cryptocurrency thefts, hacks, and fraud amounted to around $1.36 billion – one of the highest levels on record.

What is asset tracing for cryptocurrencies?

Asset tracing for cryptocurrencies examines the full life cycle of a cryptocurrency account. Investigators may use software tools and traditional forensic methods to search, review and analyze the origination and transaction activity of digital wallets and cryptocurrencies across their history.