The Tangled Web of Cryptocurrencies and Terrorism

Absztrakt

Cryptocurrencies first appeared in 2009 and swept around the world in less than five years creating both crypto billioners and new interfaces of illicit activities tasking government officials with the challenge of regulating a technology that was understood by but a few. Some governments choose the path of regulating the new asset class in terms of registration requirements, taxation as well as the extension of counter terrorism and anti money laundering measures on crypto currencies and related services while others choose to simply ban them. Along with the development of the blockchain and the spread of crypto-currencies its use for illicit activities including the financing of international terrorism gained a new impetus as well. This article assesses the technological features of the blockchain, the security concers constituted by the new asset class and the technology it is built upon, the international developments in terms of financial and legal regulation on cryptocurrencies and their trade. Finally, the paper elaborates some possible threats and challenges that have never been discussed yet, together with some recommendations towards their management.