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A recent study published by the European Parliament discusses the state of cryptocurrency-related crime, such as money laundering, tax evasion, and terrorist financing.

Requested by the European Parliament's Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance, a July study[1] titled Cryptocurrencies and blockchain: Legal context and implications for financial crime, money laundering and tax evasion highlights the issue of cryptocrime both within the European Union (EU) and abroad.

The report, written by Dr. Robby Houben, Alexander Snyers of the Policy Department for Economic, Scientific and Quality of Life Policies, provides insight regarding cryptocurrency regulation, especially as it relates to the EU's proposed Fifth Anti-Money Laundering Directive (AMLD5), crime-reducing policy recommendations, and blockchain technology in general.

The authors assert that the key issue to address when considering cryptocrime is anonymity, which they say "prevents cryptocurrency transactions from being adequately monitored, allowing shady transactions to occur outside of the regulatory perimeter and criminal organisations to use cryptocurrencies to obtain easy access to 'clean cash.'" Further, tax authorities may not know who participates in taxable crypto transactions, making it all but impossible to uncover or penalize tax evaders.

Coupled with this anonymity is the problem of EU's current legal framework, which apparently fails to sufficiently address cryptocrime. The study notes, "There are simply no rules unveiling the anonymity associated with cryptocurrencies."

That is why the authors support the AMLD5, which (1) defines cryptocurrencies and (2) obliges exchanges and wallet providers to both adhere to customer due diligence requirements and report suspicious transaction activity to financial intelligence agencies. They believe the information acquired by such intelligence units could also help authorities tackle tax evasion.

One of the report's main themes is greater regulatory control throughout the EU. The authors suggest creating a

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