Cryptocurrency or usury? Crime and alternative money laundering techniques

Barone, Raffaella; Masciandaro, Donato

doi:10.1007/s10657-019-09609-6

Cited by 51 publications

(25 citation statements)

References 43 publications

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“…Cohney et al [2019] found that many ICOs failed even to promise that they would protect investors against insider self-dealing and that a significant fraction of issuers retained centralised control through previously undisclosed code permitting modification of the entities' governing structures. Barone and Masciandaro [2019] analyse separate money laundering techniques including the use of cryptocurrency to shed light on their relative role as an effective device for the criminal organisations to clean their illegal revenues. This research is developed further in the work of who develop on the specific methods of illegality that have become a central issue in the developing cryptocurrency markets.…”

Section: Previous Literaturementioning

confidence: 99%

The Wild West of ICOs

Corbet¹,

Cumming²

2020

Cryptocurrency and Blockchain Technology

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This chapter sets out to establish the key issues that have become central within the market for Initial Coin Offerings (ICOs). Within this context, we provide a brief overview of the existing literature based on ICOs around the world, while explaining the motivations and styles of criminality that have occurred, the methods that have been widely used by cryptocurrency thieves, the potential for the innovation of theft within the sector and the related problems that such technological progress can potentially generate, and the types of market agents that have set out to potentially misuse ICOs for a variety of reasons at both the sovereign and corporate level. As cryptocurrency markets continue to evolve, it is imperative that policy-makers and regulators continue to monitor the potential development of sophisticated manipulation and cybercriminality techniques that have developed throughout the market for cryptocurrencies.

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Section: Previous Literaturementioning

confidence: 99%

The Wild West of ICOs

Corbet¹,

Cumming²

2020

Cryptocurrency and Blockchain Technology

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“…Todorof (2019) reports the use of FinTech in data theft, illegal activities and other cyber risks. Barone and Masciandaro (2019) compare the usage of cryptocurrency with traditional usury in money laundering and transactions related to illegal activities and argue that due to lower probability of success, ICO backed route of capital is not suitable for a money launderer. Cai et al (2018) discuss how recent ICO scams have raised the debate for this emerging technology.…”

Section: Initial Coin Offering (Ico)/initial Cryptotoken Offering (Ico)/initial Token Sales (Its)mentioning

confidence: 99%

Financial technology: a review of extant literature

Sangwan

Harshita

Prakash

et al. 2019

SEF

100

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Purpose This paper aims to undertake a thematic review of academic papers on financial technology (FinTech) to identify three broad categories for the purpose of classifying extant literature. The paper summarizes the research and findings in this emerging field. Thereafter, it identifies the gaps and provides directions for further research. Simultaneously, the paper collates technical terms related to FinTech that appear repeatedly in each category and explains them. Finally, the study highlights the lessons that growing FinTech firms and their regulators can learn from the experiences of their counterparts across the globe. Design/methodology/approach A systematic review of literature consisting of 130 studies (social science research network [SSRN]-29 papers, Scopus-81, other sources-20) on FinTech is carried out in this thematic paper. Findings This thematic paper divides FinTech into three themes, i.e. financial industry, innovation/technology and law/regulation. The paper suggests that a thorough impact of FinTech on various stakeholders can be understood using three dimensions, namely, consumers, market players and regulatory front. It is noted that FinTech is in its nascent phase and is undergoing continuous development and implementation through product and process innovation, disruption and transformation. Research limitations/implications The paper reports that FinTech promises huge potential for further study by various stakeholders in the FinTech industry – from academia to practitioners to regulators. Practical implications The paper summarizes lessons that could be of significance for FinTech users, producers, entrepreneurs, investors, policy designers and regulators. Originality/value The paper is believed to add value to the understanding of FinTech in light of the emerging threats and opportunities for its various stakeholders.

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“…Therefore it is essential systematically develop research interaction between disruptive technologies (including Bitcoin -authors remark) and cybersecurity. Barone et al (2019) and Danton (2014) determines anonymity and lack of control as a key money laundering elements. Clayton (2018) as a chairman of US Securities and Exchange Commission determined that KYC and AML procedures should be a must for ICO.…”

Section: Indirect Formsmentioning

confidence: 99%

“…During past few years, Banking sector revealed, that the system is not efficient enough to implement strict Know Your Customer (hereinafter -KYC) and Anti-Money Laundering (hereinafter -AML) regulations and to prevent the financial system from foreign threats (Barone, Masciandaro 2019;Kordík, Kurilovská 2017;Šimonová, et al 2019). There were number of cases in Big Scale (Danske Bank 230 billion USD, Swedbank 10 billion USD) and Small scale 4 million USD (Smurfing case in Belgium) (Bloomberg 2019, Bloomberg 2019, EU Observer 2019).…”

Section: Introductionmentioning

confidence: 99%

Towards Sustainable Cryptocurrency: Risk Mitigations From a Perspective of National Security

Limba¹,

Stankevičius²,

Andrulevičius³

2019

JSSI

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Cryptocurrency market is developing fast during the past few years. Cryptocurrency now is available as a form of payment for retail goods, as an instrument for a wholesale international transaction a mean of exchange for whatever goods and is available through ATM's. Moreover, it is developing as a possibility for fundraising a) as a private debt b) as seed capital. Companies like Facebook are discussing launching own cryptocurrency. Bank UBS is developing its blockchain based virtual currency as well. However, scientist agrees that cryptocurrency has an important impact to national security. It became a relevant instrument for illegal good transactions, a mean of exchange in the darknet and an instrument for money laundering or infrastructure for new kind of money-laundering practices (for example-"Smurfing" phenomena (EU Observer, 2019)) European Union is launching AML and KYC procedures for the cryptocurrency market. Would it be efficient? Why are we implementing KYC and AML procedures for cryptocurrency? Is it able to minimize risks?

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Cryptocurrency or usury? Crime and alternative money laundering techniques

Cited by 51 publications

References 43 publications

The Wild West of ICOs

The Wild West of ICOs

Financial technology: a review of extant literature

Towards Sustainable Cryptocurrency: Risk Mitigations From a Perspective of National Security

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