On January 16-18 in Doha, Qatar, a
large group of representatives from the Basel Institute on Governance, Europol,
Interpol, and authorities from Qatar met to discuss money laundering and
digital currencies. The event, filled with investigators from all around the
world, focused on ideas on how to tackle regulatory concerns tied to these
emerging technologies.
Qatar Authorities Host Cybercrime Event Dedicated to
Researching and Regulating Virtual Currencies
Just recently, a global conference
was held in the Persian Gulf region consisting of various sectors of law
enforcement and cybercrime investigators from many different countries. The
Basel Institute on Governance details that hundreds of executives and
authorities shared concerns in regards to digital currency payments used for
organized crime and money laundering. The event was organized to help law
enforcement worldwide learn the tools and techniques aimed at eliminating these
illicit activities.
The anti-crime focused conference
resulted in many recommendations concerning bettering the playing field for
investigators. Some of the most notable proposals explained that all countries
should share data within this new technological environment. Additionally,
“special attention should be given to the international exchange of suspicious
bitcoin addresses that threaten economic stability,” explains the agency’s
press release. Furthermore, the world’s law enforcement partners should
increase training by starting more initiatives, and particular attention needs
to be given to existing regulatory agencies.
The Basel Institute states the main reason behind the
global regulation conference in Qatar as:
There is a clear
consensus that digital currencies pose a money laundering and terrorism
financing threat. A small number of cases have already shown law enforcement
agencies that money laundering and terrorism financing can easily take place
inside virtual environments, offering high levels of anonymity and low levels
of detection removing many of the risks associated with real-world money
laundering and terrorism financing activities.
Taking Action Against Cryptocurrency Anonymity Methods
Basel Institute: "Take Action
Against Digital Currency Mixers/Tumblers"
The Basel Institute on Governance
revealed its partnership with Europol this past September.
The Basel Institute on Governance is
a nonprofit think-tank and a subsidiary of the University of Basel aimed at
countering financial corruption. The organization says the digital
payments-focused conference was initiated by the partnership formed between Europol
and Interpol, and was wholly funded by Qatar authorities. The global entities
believe that when it comes to researching digital currency technology,
international standards must be addressed.
Alongside this, all the world’s
regulators should be preparing policies for operators in the cryptocurrency
industry. This includes the regulation of exchanges and wallet providers
utilizing existing AML/KYC procedures as well as counter-terrorism financing
legislation. One interesting takeaway from the conference’s recommendations is
the group’s thoughts on anonymity platforms. The Basel Institute’s press
statement explains:
All countries are
advised to take action against digital currency mixers/tumblers. Such services
are designed exclusively to anonymize transactions and to make it impossible
for law enforcement agencies to detect and trace suspicious transactions. The
existence of such companies
should not continue to
be tolerated.
Regulators Will Continue to Pursue Digital Currency
Tracking and Legislative Framework
The conference held in Qatar shows
that global authorities and regulators want to get more serious about virtual
currency usage. In fact, Europol is already working with blockchain tracking
software companies such as Elliptic and Chainalysis in various criminal cases.
The event’s proposals detail how global law enforcement needs to pay particular
attention to the growth of “unexplained wealth.” The recommendations for
tackling digital currency regulations and the conference itself was established
this past September. The Basel Institute on Governance states that this event
is in line with another international working group focused on similar modern
payment regulations and legislation.
What do you think about the Basel
Institute on Governance, Europol, and Interpol’s latest initiative towards
virtual currency regulation? Let us know in the comments below.
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