THE ROLE OF CRYPTOCURRENCIES IN MONEY LAUNDERING: CHALLENGES AND REGULATORY RESPONSES

Abstract

This article aims to dissect the complexities surrounding the utilization of cryptocurrencies in money laundering activities within Asian contexts, focusing on the intertwined regulatory challenges. It seeks to unravel how the cultural nuances and economic ambitions in Asia contribute to the proliferation of such activities, spotlighting the unique hurdles these pose to crafting effective regulatory frameworks. Employing a comprehensive literature review as our primary methodology, we delve into a wide array of sources that include case studies, legal reviews, and analyses of existing detection methods. The focus is specifically on Asian countries, providing a regional lens through which to examine the global issue of cryptocurrency-related money laundering. This approach enables a deep dive into cultural, economic, and regulatory aspects specific to Asia that influences these laundering activities. The investigation reveals a complex interplay of factors fueling cryptocurrency-related money laundering in Asia, including a cultural emphasis on wealth accumulation, competitive economic goals, age-based cultural expectations, significant lapses in auditing practices, misuse of charitable donations, and well-networked support systems facilitating illicit activities. These factors not only perpetuate the region’s struggle with development but also present substantial obstacles to effective money laundering detection and regulation. The lack of robust auditing mechanisms and the exploitation of philanthropic avenues emerge as significant vulnerabilities, alongside deeply ingrained cultural and economic motivations.