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Cryptocurrencies and Fraudulent Transactions: Risks, Practices, and Legislation for Their Prevention in Europe and Spain

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Listed:
  • David Sanz-Bas

    (Department of Economics, Catholic University of Ávila, Canteros St., 05005 Ávila, Spain)

  • Carlos del Rosal

    (Independent Researcher, 05005 Ávila, Spain)

  • Sergio Luis Náñez Alonso

    (DEKIS Research Group, Department of Economics, Catholic University of Ávila, Canteros St., 05005 Ávila, Spain)

  • Miguel Ángel Echarte Fernández

    (DEKIS Research Group, Department of Economics, Catholic University of Ávila, Canteros St., 05005 Ávila, Spain)

Abstract

Cryptocurrencies have been developing very rapidly in recent years, and their use is becoming more and more widespread in different areas. The use of digital currencies for legal uses is advancing along with technological development, but, at the same time, criminal activities are also emerging to take advantage of this boom. The aim of this paper has been, first, to analyze the various ways in which individuals and criminal organizations have taken advantage of the phenomenon of cryptocurrencies to carry out fraudulent activities such as laundering money of illicit origin and, second, to provide an overview of the legal tools that have been developed in this regard in Europe and, more specifically, in Spain to combat these activities. Undoubtedly, cryptocurrencies bring great benefits to the economy, but it is also necessary to know the risks and abuses that have been developed to prevent them.

Suggested Citation

  • David Sanz-Bas & Carlos del Rosal & Sergio Luis Náñez Alonso & Miguel Ángel Echarte Fernández, 2021. "Cryptocurrencies and Fraudulent Transactions: Risks, Practices, and Legislation for Their Prevention in Europe and Spain," Laws, MDPI, vol. 10(3), pages 1-20, July.
    • Handle: RePEc:gam:jlawss:v:10:y:2021:i:3:p:57-:d:591511
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    References listed on IDEAS

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    2. Simon Butler, 2019. "Criminal use of cryptocurrencies: a great new threat or is cash still king?," Journal of Cyber Policy, Taylor & Francis Journals, vol. 4(3), pages 326-345, September.
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    4. Cheah, Eng-Tuck & Fry, John, 2015. "Speculative bubbles in Bitcoin markets? An empirical investigation into the fundamental value of Bitcoin," Economics Letters, Elsevier, vol. 130(C), pages 32-36.
    5. Sergio Luis Náñez Alonso & Miguel Ángel Echarte Fernández & David Sanz Bas & Jarosław Kaczmarek, 2020. "Reasons Fostering or Discouraging the Implementation of Central Bank-Backed Digital Currency: A Review," Economies, MDPI, vol. 8(2), pages 1-27, May.
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    Cited by:

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    2. Łęt Blanka & Sobański Konrad & Świder Wojciech & Włosik Katarzyna, 2022. "Is the cryptocurrency market efficient? Evidence from an analysis of fundamental factors for Bitcoin and Ethereum," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(4), pages 351-370, December.

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