Cryptocurrencies and Money Laundering: Methodologies, Prospect and Proposed Legislation for their Prevention in Pakistan

Abstract

The research article focuses on analysis of crypto currencies which have gained popularity in recent years, especially with the landmark triumph of Bitcoin and the utilization of these cryptocurrencies in money laundering. Like any other technology, innovation and invention the cryptocurrencies have both merits and demerits, they can either be used in positive or negative ways. The usage of digital currencies for lawful purposes is growing in tandem with technical advancements, but criminals are rising to cash this trend.  This research exposition will investigate the diverse modus operandi utilized to enjoy antagonistic benefit of the digital currency for money laundering and, second, to give an outline of the legal instruments that have been established in Pakistan to counteract these actions. Without a question, cryptocurrencies are advanced financial devices, and the proper framework for their regulation is required through appropriate legislation. In this Article important legislative recommendations are also discussed in detail.