Money Laundering through Digital Currencies: Theoretical Perspectives

Abstract

Money laundering constitutes a critical issue that adversely affects the economic system and financial security of nations worldwide, particularly in the digital era where financial technologies have advanced at an unprecedented pace. The emergence of digital currencies (Cryptocurrency) and blockchain systems (Blockchain) has created both opportunities and challenges. On the one hand, these technologies enhance convenience, efficiency, and reduce transaction costs; on the other hand, they provide avenues for new forms of money laundering that are increasingly complex and difficult to trace and monitor.

This article therefore aims to examine the patterns of money laundering through digital currencies by analyzing such practices in light of relevant concepts and theories, including the Conspiracy Theory, the Aiding and Abetting Theory, the Motivation Theory, Maslow’s Hierarchy of Needs, the Due Process Model, and the Crime Control Theory. The purpose is to establish a comprehensive understanding of money laundering through digital currencies and to design appropriate and effective regulatory measures. Furthermore, it underscores the importance of fostering international cooperation in the prevention and suppression of financial crimes in the digital sphere, thereby contributing to the maintenance of a balance between the promotion of innovation and the safeguarding of economic security in society.