Cryptocurrency and money laundering: A literature review

Achraf Guidara

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Cryptocurrency and money laundering: A literature review

Achraf Guidara

https://doi.org/10.22495/clgrv4i2p4

Abstract

According to previous research, cryptocurrency is a driver of money laundering and is associated with several risks (Fletcher, Larkin, & Corbet, 2021; Teichmann & Falker, 2020; Tsuchiya & Hiramoto, 2021). As a result, the purpose of this paper is to concentrate on empirical research in the accounting and finance fields that deal with the impact of cryptocurrencies on the phenomenon of money laundering. To identify relevant literature, we use the following keywords including “cryptocurrency or digital money” and “bitcoin and money laundering”. We identify 28 research papers published between 2011 and 2021. The findings of the studies that were reviewed emphasized the importance of developing a legal framework for digital currencies. Furthermore, it was revealed that all stakeholders play an important role in lowering the risk of money laundering and illicit activities. The findings highlight the critical role that banks, regulators, and all stakeholders play in reducing money laundering risks. These findings may have policy implications for governments aiming to improve cryptocurrency laws and regulations by enforcing financial security standards and laws and monitoring individuals’ and firms’ compliance with them. The review identifies some of the literature’s limitations and suggests future research directions.

Keywords: Cryptocurrency, Bitcoin, Money Laundering, Financial Crimes

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

Acknowledgements: The Author acknowledges the helpful assistance provided by Professor Hichem Khlif in the revision of this paper.

JEL Classification: G3, G28, M4

Received: 28.05.2022
Accepted: 28.11.2022
Published online: 01.12.2022

How to cite this paper: Guidara, A. (2022). Cryptocurrency and money laundering: A literature review. Corporate Law & Governance Review, 4(2), 36–41. https://doi.org/10.22495/clgrv4i2p4

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