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5 - Cyberlaundering, VASPs’ Regulation, and AML Policy Response

from Part II - Opportunities and Challenges in Crypto-Asset Regulation

Published online by Cambridge University Press:  26 October 2023

Sabrina Leo
Affiliation:
Sapienza Università di Roma
Ida Claudia Panetta
Affiliation:
Sapienza Università di Roma
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Summary

The chapter addresses how the VASPs’ nature could lend itself to illicit uses, due to the technological progress that has allowed to protect the authors’ names of transactions with virtual currency. Background aspects such as the pandemic and the conflict between Russia and Ukraine may have accelerated the use of VASPs also in illicit terms. Therefore, regulation is necessary for the uncontrolled development of the illicit exploitation of a distributed ledger technology (DLT) as an upstream subject of VASPs. The role of the FAFT is essential to understand what the international orientation and commitment are in contrasting the cyberlaundering phenomenon, in which the VASPs represent one of the main players and a particularly attentive element to all international jurisdictions.

Type
Chapter
Information
The Role of Distributed Ledger Technology in Banking
From Theory to Practice
, pp. 114 - 132
Publisher: Cambridge University Press
Print publication year: 2023

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References

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