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Evaluating cryptocurrency laundering as a complex socio-technical system

Author

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  • Dennis B. Desmond
  • David Lacey
  • Paul Salmon
Abstract
Purpose - The purpose of this paper is to present the findings from a literature review, which aimed to identify previous studies evaluating cryptolaundering from a systems thinking perspective. The aim of this paper is to first confirm that cryptolaundering systems can indeed be defined as complex socio-technical systems and second to present the findings from a systematic review of the literature to determine the extent to which previous research has adopted a systems thinking perspective. Design/methodology/approach - The study involved a SLR of studies published in the peer-reviewed literature between 2009 and 2018. Rasmussen’s risk management framework (Rasmussen, 1997) was used to evaluate the extent to which a systems thinking perspective had been adopted. Findings - The cryptolaundering process is considered to be a complex socio-technical system. The review demonstrates that no previous studies have defined cryptolaundering as a complex socio-technical system or used systems thinking framework approach to evaluate how criminals, regulatory bodies or law enforcement entities understand processes and assess risk within cryptolaundering systems. It is argued that using such an approach to the cryptolaundering process would likely improve assessing criminal risk analyses of cryptolaundering and assist law enforcement and regulatory bodies with understanding risk management during the laundering of cryptocurrencies. Originality/value - Future assessments of cryptolaundering using socio-technical system analytical processes may afford law enforcement and regulatory bodies the opportunity to improve intervention techniques and identify gaps in regulations and enforcement.

Suggested Citation

  • Dennis B. Desmond & David Lacey & Paul Salmon, 2019. "Evaluating cryptocurrency laundering as a complex socio-technical system," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 22(3), pages 480-497, July.
    • Handle: RePEc:eme:jmlcpp:jmlc-10-2018-0063
    DOI: 10.1108/JMLC-10-2018-0063
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    References listed on IDEAS

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    1. Siddiqi, Hammad, 2014. "The Routes to Chaos in the Bitcoins Market," Risk and Sustainable Management Group Working Papers 164178, University of Queensland, School of Economics.
    2. Sean Foley & Jonathan R Karlsen & Tālis J Putniņš, 2019. "Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed through Cryptocurrencies?," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1798-1853.
    3. Thomas J. Holt, 2013. "Exploring the social organisation and structure of stolen data markets," Global Crime, Taylor & Francis Journals, vol. 14(2-3), pages 155-174, May.
    4. Yhlas Sovbetov, 2018. "Factors Influencing Cryptocurrency Prices: Evidence from Bitcoin, Ethereum, Dash, Litcoin, and Monero," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 2(2), pages 1-27.
    5. Perri Reynolds & Angela S.M. Irwin, 2017. "Tracking digital footprints: anonymity within the bitcoin system," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 20(2), pages 172-189, May.
    6. Anita Lavorgna, 2015. "Organised crime goes online: realities and challenges," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 18(2), pages 153-168, May.
    7. Alice Hutchings & Thomas J. Holt, 2017. "The online stolen data market: disruption and intervention approaches," Global Crime, Taylor & Francis Journals, vol. 18(1), pages 11-30, February.
    8. Giorgio Merlonghi, 2010. "Fighting financial crime in the age of electronic money: opportunities and limitations," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 13(3), pages 202-214, July.
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    Cited by:

    1. Fabian Maximilian Johannes Teichmann & Marie-Christin Falker, 2020. "Cryptocurrencies and financial crime: solutions from Liechtenstein," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 24(4), pages 775-788, June.
    2. Rina Astini & Kehkashan Ishrat & Yanto Ramli & Tafiprios Tafiprios & Kwong Wing Chong & Ooi Chee Keong, 2023. "Nexus among Crypto Trading, Environmental Degradation, Economic Growth and Energy Usage: Analysis of Top 10 Cryptofriendly Asian Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 339-347, September.
    3. Soukaina Abdallah-Ou-Moussa & Martin Wynn & Omar Kharbouch, 2025. "Blockchain, Cryptocurrencies, and Decentralized Finance: A Case Study of Financial Inclusion in Morocco," IJFS, MDPI, vol. 13(3), pages 1-25, July.
    4. Nasir Sultan & Norazida Mohamed & Mervyn Martin & Hafizah Mohd Latif, 2023. "Virtual currencies and money laundering: existing and prospects for jurisdictions that comprehensively prohibited virtual currencies like Pakistan," Journal of Money Laundering Control, Emerald Group Publishing Limited, vol. 27(2), pages 395-412, May.

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