European Commission suggests that Digital Currency Use by Organized Criminals is Rare
09 July 2017 21:00, UTC
After having investigated several virtual currencies, Commission concluded that dispite anonymity, criminal organizations rarely use crypto currencies. One of the main reasons for it is high technology, which forms the basis of crypto currency operations.
The report also notes that some may have an interest in using virtual currencies to finance terrorist activities, but it stops short of offering specific instances, pointing to law enforcement information-gathering efforts that have identified posts on social media.
The authors argue that the lack of an EU-wide legal framework creates vulnerabilities on the transaction monitoring front and suggested creation of a database of users and associated wallet addresses, as one of possible regulation mechanisms.
In the near future the Commission is going to issue another report with particular proposals on regulation of crypto currencies and restraining their possible use for criminal purposes.