The Dark Future of Cryptocurrencies: A Critical Study of the Impact of Anti-Money Laundering Regulation on the Official Recognition of Cryptocurrencies.

Abstract

Abstract.

Cryptocurrency has emerged as a new form of digital currency based on blockchain technology, and, because it is still in its infancy, cryptocurrency has recently become a preferred option for many criminals. Criminal activities extend to money laundering and kidnapping for ransom. These crimes related to money laundering pose challenges for governments to manage in light of the anonymity and also the decentralisation that characterises the cryptocurrency. Therefore, cryptocurrencies have attracted the attention of regulators all over the world. However, regulatory measures have not kept pace with the current situation because technology is continuously evolving. This study seeks to understand cryptocurrencies and ascertain their legal future, especially as some countries have imposed a complete ban on them, while others allow them, but they have not organised it later. The study also focuses on the future challenges facing cryptocurrencies in light of the inability of regulations and laws in many countries to control this area. The study looks in-depth at the difference in legislation between Saudi Arabia and the UK of cryptocurrencies. The study suggests that a stable currency, which is characterised by stability, is a tool to hedge against the risks of cryptocurrencies and the possibility of it being an alternative to the encrypted currency as a means of a safe haven. The study also discusses the danger of creating central bank currencies, which is one of the plans of many countries to protect their technological future from the danger of cryptocurrencies.