Cryptocurrency Money Laundering Crimes: A Legal and Technical Analytical Study in Light of International and National Legislation

Abstract

The rapid expansion of cryptocurrency use has led to the emergence of new types of economic crimes, most notably organized, cross-border digital money laundering. This crime relies on a complex technical architecture that utilizes tools that enable anonymity, multi-stage disguise, and instant cross-border transfers. This makes it difficult for judicial and regulatory authorities to trace suspicious funds or accurately establish their true and real source. This study aims to provide a comprehensive analytical treatment of cryptocurrency money laundering from a legal and technical perspective, by deconstructing the stages of the crime and identifying the methods used by perpetrators to conceal criminal proceeds, such as smart contracts, currency mixing services, and unregulated trading platforms. The study also discusses shortcomings in national legislative structures, challenges associated with weak international cooperation, and the absence of effective digital proof systems compatible with the decentralized nature of cryptocurrencies.  The study pays particular attention to the intersection of law and modern technology, and the ability of traditional legal texts to adapt to rapid digital transformations. It also addresses the risks associated with the misuse of these currencies to finance terrorism and transnational crimes. The study concludes that the current legal framework is insufficient to combat this type of crime. This requires the development of modern, flexible legislation and the expansion of the concept of criminal liability to include digital intermediaries, developers, and technical facilitators. The study calls for the development of a specialized national system to combat crypto-money laundering, based on the integration of blockchain analysis tools, the training of legal and technical personnel, and the promotion of cross-border cooperation. The study concludes that addressing digital money laundering cannot be effective unless traditional legislative approaches are reconsidered and the technical dimension is integrated into legal frameworks, in a delicate balance between protecting digital rights and maintaining the country's economic security.