Challenges and New Strategies Faced by Financial Intelligence Units in Monitoring Cryptocurrency Transactions

Öz

Globally and in Turkey, financial intelligence units (FIUs) face various complex challenges when monitoring cryptocurrency transactions. In addition to the high volume and speed of transactions, the anonymity provided by cryptocurrencies and decentralized finance platforms makes it difficult to detect suspicious activities. Anonymity and decentralization conceal the identities of transacting parties, complicating FIUs’ efforts to track illegal activities. This complexity is further amplified in international transactions due to discrepancies in regulatory frameworks across countries and data protection laws. Criminal organizations worldwide and in Turkey utilize advanced methods in money laundering. Moreover, as transaction volumes increase, so do false positive alerts, which strain the analytical capacities of FIUs. In response to these challenges, FIUs need to invest in advanced technologies, such as artificial intelligence (AI), machine learning (ML), big data analytics, and blockchain (BC) forensics. However, respecting individual privacy rights remains a critical balance to be carefully managed in the application of these technologies. This study examines the challenges faced by FIUs in tracking and preventing illicit proceeds despite the growing use of BC-based cryptocurrencies and the measures required to address these challenges.

Anahtar Kelimeler

• Cryptocurrencies
• Financial Intelligence
• BC
• Illicit Proceeds
• DeFi

Kaynakça

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