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Cryptocurrencies as Threats to Public Security and Counter Terrorism

The rise of Bitcoin and other cryptocurrencies poses new challenges for the fight against money laundering and terrorist financing (AML/CFT). Cryptocurrencies provide their users with the opportunity to make global payments that are beyond the control of financial regulators and security authorities. In addition, there is a growing risk that terrorist financiers may evade state surveillance and tap into new sources of funding.

Berlin Risk was commissioned by the Counter Extremism Project (CEP) to write a study on the topic. This study makes a number of recommendations aimed at increasing the effectiveness of the agreed measures. Countries like Germany continue to face the difficult task of keeping pace with the high speed at which crypto technology is developing. It is therefore essential to increase the expertise and technical capabilities available to German regulatory authorities. The overlap of responsibilities between various German authorities in the area of AML/CFT should be reduced and ideally eliminated. The relevant functions, including prosecutorial responsibilities, expertise and capacity, should be pooled and integrated where possible.

Click here to download the English version of the study.