Anonymous digital currencies enable dark net crime - report

Wednesday 1 October 2014 14:33 CET | News

Digital currencies with a high degree of anonymity, such as Darkcoin, are havens for cyber-criminals and a challenge for law enforcement, according to recent finding.

The relative anonymity of dark net services, made possible by platforms like Tor, has led to a proliferation of various platforms selling and distributing child abuse material (CAM), according to the ‘Internet Organised Crime Threat Assessment’ (iOCTA) report issued by Europol news agency, reports.

The report also points out that decentralised digital currencies such as Bitcoin and Darkcoin use peer-to-peer networks with little in the way of control and that digital currencies are generally designed for legitimate use, but they are “heavily abused” by cybercriminals.

The report also warns that digital currencies could “become an ideal instrument” for money laundering. Criminals can use unregistered dark net exchanges, or try to exploit legitimate exchanges with poor know-your-customer (KYC) controls.

Another problem is the rise of ‘tumblers’ and ‘mixers’, services which allow users to launder their cryptocurrency, while charging a relatively small commission. The report looks into the possibility of using online gambling sites to launder ‘dirty’ cryptocurrency.

The report issues a number of recommendations calling for new EU legislation that would apply anti-money laundering regulations to digital currencies and strengthen relationships with money transfer businesses, banks, law enforcement and digital currency operators.

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Keywords: Anonymous, digital currencies, dark net crime, report, law enforcement, EU, Europol, Bitcoin, Darkcoin, laundering
Categories: DeFi & Crypto & Web3
Countries: World
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DeFi & Crypto & Web3

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