The advent of globalization and technological progress created an interconnected, global financial system. Crypto assets with their revolutionary blockchain technology disrupted the traditional financial system, offering alternative means for value exchange and investment. However, due to their pseudonymous and decentralized nature, that enables conducting transactions without oversight of a third intermediary, they have become attractive to criminals looking for new creative ways to launder their money. Consequently, the use of crypto assets for illicit purposes has drawn widespread regulatory attention, prompting countries and international organizations like the Financial Action Task Force to expand their recommendations to cover crypto assets and providers of crypto services. Following suit, the European Union swiftly included such requirements in its anti-money laundering regulatory framework.
This dissertation provides an overview of the characteristics of crypto assets, as well as of the money laundering process through these digital assets. The primary objective of this thesis is to illustrate how select emerging digital technologies, namely artificial intelligence and robotic process automation can assist crypto asset service providers, as obliged entities to ensure compliance with anti-money laundering requirements, as well as their inherent challenges. Additionally, it examines current regulatory gaps within the European Union's anti-money laundering framework and explores ongoing efforts to address them.
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