Virtual currencies and terrorist financing: assessing the risks and evaluating responses
This study, commissioned by the European Parliament’s Policy Department for Citizens’ Rights and Constitutional Affairs at the request of the TERR Committee, explores the terrorist financing (TF) risks of virtual currencies (VCs), including cryptocurrencies such as Bitcoin. It describes the features of VCs that present TF risks, and reviews the open source literature on terrorist use of virtual currencies to understand the current state and likely future manifestation of the risk. It then reviews the regulatory and law enforcement response in the EU and beyond, assessing the effectiveness of measures taken to date. Finally, it provides recommendations for EU policymakers and other relevant stakeholders for ensuring the TF risks of VCs are adequately mitigated.
Study
External author
Tom KEATINGE, David CARLISLE, Florence KEEN
About this document
Publication type
Keyword
- capital movement
- computer crime
- criminal law
- EDUCATION AND COMMUNICATIONS
- electronic banking
- EU police cooperation
- European construction
- EUROPEAN UNION
- fight against crime
- FINANCE
- financial institutions and credit
- financial legislation
- financial services
- free movement of capital
- information technology and data processing
- LAW
- monetary economics
- money laundering
- payment system
- POLITICS
- politics and public safety
- social affairs
- SOCIAL QUESTIONS
- terrorism financing
- threat to national security
- virtual currency