Crime & Cryptocurrency in the Shadows : An Evaluation of FATF’s Global Response to Crypto-Based Money Laundering

Sammanfattning

The fast expansion and evolution of digital finance as well as the dark web has been a ground pillar for the creation of unprecedented challenges for global governance in the fight against cybercrime. This thesis is investigating the efficiency of the Financial Action Task Force (FATF) in promoting global compliance with the Travel Rule for cryptocurrency regulation between 2019 and 2024. The focal point is on how this regulatory measure addresses illicit transactions facilitated via dark web marketplaces such as Silk Road. To effectively analyse the research question, neoliberal institutionalism will primarily be used throughout the thesis and supported by constructivism as a secondary perspective. These theories are used together with qualitative case studies to evaluate FATF’s institutional capacity, enforcement outcomes and adaptability to technological change. The argument throughout the research is that current FATF-led governance efforts remain inadequate in scope, coordination and enforcement to match the growing sophistication of crypto-enabled cybercrime. Findings throughout this thesis has showed a big governance gap, where technological complexity, jurisdictional fragmentation and slow regulatory adaptation hinder the Travel Rule’s global implementation. It all is concluded by shedding light on the importance and need for a more cohesive, adaptive and digitally skilled cooperation to address this evolving security threat properly and standing a chance against the current growing issue of financial cybercrime.