How Criminals Can Use Cryptocurrencies

While cryptocurrencies represent an important innovation for the financial industry of the whole world, the relative anonymity associated with exchanges and wallets makes them vulnerable to use by criminals.

Bitcoin and other popular cryptocurrencies, for example, have been the subject of a growing number of ransomware attacks, in which hackers encrypt files and demand payment in cryptocurrency for the files' release.

Ransomware attacks are one of the most scalable types of crime enabled by cryptocurrencies. These attacks pose a challenge to law enforcement and regulators due to the possibility that large organizations, institutions, or even governments themselves can be targeted and forced to pay ransom.

Sanctioned countries and organizations are also using cryptocurrencies to circumvent sanctions. This is commonly referred to as "crypto-cleansing." In particular, crypto-assets known as privacy coins are most commonly used for this purpose.

EU regulators have responded to these risks by including crypto assets, exchanges and wallets within the scope of anti-money laundering rules.

Contact Us and Apply for a Crypto License in Estonia

Specialists from AlphaLAW will be happy to help you obtaining a cryptocurrency license in Estonia. Our assistance includes the preparation of the list of required documents, help in developing company procedural rules, AML/KYC documentation, translation of documents into Estonian/English and support throughout the whole licensing process.

In case you have any questions or are interested in obtaining an Estonian license to exchange cryptocurrencies and other virtual assets for a fiat currency (crypto license in Estonia), please contact us through the following communication channels.