Peculiarities of countering legalization of criminal income with the help of virtual assets: legislative regulation and practical implementation
| DOI | https://doi.org/10.1108/JMLC-12-2021-0135 |
| Published date | 18 January 2022 |
| Date | 18 January 2022 |
| Pages | 50-59 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Mykhailo Dumchikov,Oleg Reznik,Olha Bondarenko |
Peculiarities of countering
legalization of criminal income
with the help of virtual assets:
legislative regulation and
practical implementation
Mykhailo Dumchikov,Oleg Reznik and Olha Bondarenko
Academic and Research Institute of Law, Sumy State University, Sumy, Ukraine
Abstract
Purpose –The purpose of this paperis to define and characterizepeculiarities of countering the legalization
of criminalincome with the help of virtual assets.
Design/methodology/approach –The analysis of the legislative delineation and the realities of the
practical implementation of the features of combating the legalization of criminalproceeds with the help of
virtual assets in Ukraine was carried out with the help of general scientific methods of cognition. The
systematic methodhelped identify the main ways to legalize criminalproceeds with the help of virtual assets.
Using legal techniques,proposals will be formulated to amend draft legislationon legislative regulation of the
concept of “virtualassets”. The generalization method was used todevelop ways to combat the legalization of
criminal proceedswith the help of virtual assets. The method of legal forecasting was used to substantiatethe
proposed areas of combating moneylaundering with the help of virtual assets. The method of extrapolation
will be used to determine the possibility of implementing foreign experience in domestic practiceto combat
money launderingwith the help of virtual assets.
Findings –One of the relativelynew and increasingly popular ways of money laundering is to committhis
act with the help of virtual assets. Methods of money launderingthrough virtual assets include services for
the conversion of virtual assets, P2P exchange, gamblingsites, virtual asset mixers and the use of fictitious
internet sites selling digitalgoods. The difficulty of counteracting the legalization of criminalproceeds with
the help of virtual assetsis primarily due to the lack of legislative regulation of the conceptof “virtual assets”
in Ukraine. Yes,the draft law is currently being finalized. Besides,even the current edition is not evaluated by
the authors as perfect. After all, theissue of the content of the concept of “virtual assets”and its relationship
with virtualsecurities, cryptocurrency and virtual propertyremains unresolved.
Originality/value –One of the relatively new and increasingly popular ways of money launderingis to
commit this act with the helpof virtual assets. Methods of money laundering throughvirtual assets include
services for the conversionof virtual assets, P2P exchange, gambling sites, virtual asset mixers and the use of
fictitious internet sites selling digital goods. It is essential to intensify financial monitoring by financial
control bodies over the activities of conversionservice centers. Moreover, given the transnational nature of
legalizing criminal proceeds,especially those committed through virtual assets, internationalcooperation in
combating this crime is vital. The authors have proposed specific measures to ensure that a coherent
consolidationof efforts can be built.
Keywords Virtual assets, Money laundering, Countermeasures, International cooperation,
Legislation
Paper type Viewpoint
This work was supported by the framework of project No.0120U100474 Development of Meth ods of
Interaction between Law Enforcement Agencies of Ukraine on Counteraction to Money Laundering.
On behalf of all authors, the corresponding author states that there is no conflict of interest.
JMLC
26,1
50
Journalof Money Laundering
Control
Vol.26 No. 1, 2023
pp. 50-59
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-12-2021-0135
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm
To continue reading
Request your trial