Abuse expands when used in cryptocurrency cases, Europol admits, while noting that blockchain technology offers new opportunities for authorities to fight crime. European law enforcement agencies have also found it useful in investigating money laundering networks.
Understanding cryptocurrencies is essential to tackle organized crime, Europol says
As cryptocurrencies are used across borders and industries, they will increase illicit use, new forms of crime, and money laundering. The European Union Law Enforcement Cooperation Agency (Europolconcluded at a recent meeting of crypto experts, financial investigators, regulators and business representatives.
The 6th Global Conference on Criminal Finance and Cryptocurrencies was recently held at the agency’s headquarters in the Netherlands. The two-day event, supported by the Basel Institute for Governance Studies through its Joint Working Group on Criminal Finance and Cryptocurrencies, was intended to enhance cooperation among participants in the investigation and prosecution of crypto-related crimes.
Speakers also noted that with the right tools employed, blockchain technology “can provide unprecedented opportunities to investigate organized crime and money laundering networks and recover stolen funds,” the Europol said in a press release The European Police Agency said in a press release. It emphasized that improved understanding and capabilities in the crypto domain are essential in tackling crime and illicit money laundering.
Law enforcement, regulatory agencies, and the private sector are working hard to stay ahead of those who seek to misuse crypto assets, Europol said. The agency highlighted stricter EU legislation in terms of anti-money laundering, with upcoming rules to ensure that digital currencies like Bitcoin are treated the same as other assets. This also makes it easier to seize and control crypto funds, police officials added.
Europol further noted that investigators are using blockchain-based technology to track money flows, which can not only identify fraudsters and hackers, but also expose more “traditional” criminal groups and money laundering networks.” The agency stated that “private companies are rapidly innovating to provide tools and analytical capabilities to track funds laundered on multiple blockchains using different obfuscation techniques.
The latest edition of Europol’s Crypto Conference includes EU institutions such as the European Parliament, crypto service providers such as Binance, the world’s leading digital asset exchange, blockchain forensics and asset recovery such as Chainalysis More than 1,700 attendees from 119 countries attended, with speakers representing companies and law enforcement officials from many European countries, including the United States and South Korea.
The event came on the heels of significant progress toward regulating the crypto space in Europe. This summer, major EU institutions and member states struck a deal on a crypto asset market (MiCA) regulatory package after reaching agreement to adopt a set of anti-money laundering rules for cryptocurrency transactions.
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