Are Blockchain and Bitcoin New Tools for Criminals?

Cryptocurrencies and blockchain technology have peculiarities that, in the absence of adequate supervision, mean they are likely to become instruments harmful to the economic and monetary system as a whole, and risky for individual users, and be an additional useful tool for criminal organizations.

The lack of regulation of these new technologies including blockchain, Bitcoin, internet of things, cryptocurrency, artificial intelligence, etc. carries the risk of illegal use by organized crime. Some of the common illegal activities for example used by these disruptive technologies include money laundering, drug trading, facilitating sex, funding terrorism, and many others.

Recycling Risks Related with the Use of Cryptocurrencies and Blockchain

The original and popular cryptocurrency, bitcoin, has been on the market for more than a decade. Since then, on the regulatory front, a few timid steps have been taken. There is no denying that virtual currencies are a "tool" potentially capable of improving the efficiency of the global financial system, thanks in part to the blockchain and distributed ledger technology (DLT) behind it.

This nascent advanced technology allows users to make instant payments anywhere in the world. It would, according to many, bring numerous benefits to companies, including increasing cybersecurity, reducing costs, increasing transparency.

Sensitive Reactions

The World Economic and Financial Authorities have already noted these dangers in reports released since 2011, calling on governments to increase attention on this area and work to put in place effective regulation that will prevent the use of cryptocurrencies for money laundering, financing terrorism, or consumer scams.

It is clear that cryptocurrencies and blockchain technology remain, to this day, a source of concern for the authorities, who fear that crime and terrorist organizations will be able to make better use of the sector to finance and conceal their illicit activities. Meanwhile, in July 2018 the C.D.V Anti-Money Laundering Directive came into force, an important step that allows the obligations of adequate verification to be extended to exchangers, virtual exchange platforms, and digital wallet service providers.

In Italy, the production and market engineer chain is subject to the obligations of d.lgs. 231 of 2007 (c.d. anti-money laundering decree), under the supervision of the Bank of Italy and the Unemployment Insurance Fund (UIF), stops remaining the powers of police and intelligence. A minefield. Which is not to say that we deny the progress of science, but that one wants only to appreciate the usefulness and effectiveness.