United Nations official believes cryptocurrencies hinder the fight against crimes

Neil Walsh, the head of the Cyber Crime and Anti Money Laundering (AML) unit of the United Nations Office on Drugs and Crime (UNODC), stated that cryptocurrencies pose a hurdle in the fight against global crimes. In the interview with a local radio station in Australia, the top United Nations official attributed the challenge to the nature of cryptocurrencies. He alluded that the nature of cryptocurrencies favours the criminals while at the same time greatly disadvantages investigations.

Criminals are also increasingly preferring the use of virtual currencies in their transactions to benefit from the decentralized nature of cryptocurrencies and the added layers of anonymity it gives. This is also the very reason that makes it difficult for police officers to nab the criminals given that the police cannot track the encrypted financial transactions.

On elaborating how the nature of cryptocurrencies hinders the fight against crime in the interview, Walsh said:  

“When you add a layer that is encrypted, anonymous or pseudo anonymous, that makes it very difficult for investigators to counter that challenge. It makes it easier for the bad guys to do what they do” 

Efforts to overcome the hurdle 

While highlighting the challenges that cryptocurrencies pose in the fight against international crime, Walsh also acknowledged the efforts being put in by the global regulator, the Financial Action Task Force (FATF), to mitigate the challenges. These efforts include; FATF advocacy for crypto legislation that is in line with Anti Money Laundering (AML) laws, and FATF’s recommendations for states to impose either restriction or suspend virtual asset platforms that fail to comply with the AML requirements.

Walsh further noted that the criminals are using cryptocurrency to fund criminal activities such as child slavery, child sex exploitation networks, terrorist activities, and the sale of sexually exploitative material. These crimes cut across borders and affect the world at large. For this reason, he called upon other stakeholders such as national regulators, governments and blockchain technology experts to assist in the developing of comprehensive cryptocurrency regulations. Such regulations if developed and adopted internationally will help stop the criminals in their tracks. 

Walsh also called upon the owners and operators of virtual currencies exchange platform to be extra vigilant and not allow their platforms to be used to advance criminal activities.