EU Report: Digital Currency Use by Organized Criminals Is ‘Rare’

A newly launched report from the European Commission suggests there may be comparatively little digital currency use amongst organized crime teams.

Calling circumstances involving organized crime and the tech “quite rare”, the report was despatched in late June from the European Commission (the European Union’s govt arm) to the bloc’s legislature in addition to its physique of nationwide leaders. It was made public on 4th July.

The report’s authors argued that technological limitations – a lack of knowledge particularly – is behind the obvious low utilization charges.

They concluded:

“Few investigations have been conducted on virtual currencies which seem to be rarely used by criminal organizations. While they may have a high intent to use due to [virtual currencies] characteristics (anonymity in particular), the level of capability is lower due to high technology required.”

The report additionally notes that some “may have some interest in using [virtual currencies] to finance terrorist activities,” but it surely stops wanting providing particular cases, pointing to legislation enforcement information-gathering efforts which have recognized posts on social media. Technical shortcomings are once more cited as a limiting issue.

Ultimately, the authors argue that the dearth of an EU-wide authorized framework creates vulnerabilities on the transaction monitoring entrance.

It notably argues for the creation of a database of customers and related wallet addresses – a attainable route that has drawn criticism from advocates of the expertise and privateness extra usually.

“The Commission would issue a report to be accompanied, if necessary, by proposals, including, where appropriate, with respect to virtual currencies, empowerments to set-up and maintain a central database registering users’ identities and wallet addresses accessible to FIUs, as well as self-declaration forms for the use of virtual currency users,” it suggests.