Crypto and crime: what Europol recommends to protect the sector

Last week, the 9th Global Conference on Criminal Finances and Crypto-Assets took place, bringing together public and private sector actors from around the world.

For Europol, the European law enforcement agency, the event was an opportunity to highlight a crucial fact: the crypto-asset sector is no longer merely a space for innovation, but also an expanding arena for criminal activity.

*Crypto-assets are rapidly going mainstream*: businesses, banks, start-ups and retail investors are showing growing interest.

This widespread adoption creates opportunities for financial innovation, but it also brings escalating risks.

At the same time, *criminal networks are starting to adopt these technologies* to exploit the ecosystem, while investigative methods must constantly evolve to keep pace with their sophistication.

As a result, the boundary between legitimate uses and illegal activities is becoming increasingly blurred. For Europol, this issue is no longer marginal: it now represents *a global challenge* and a top priority in combating financial crime.

(Europol)

In the past, criminals *primarily used Bitcoin* to move money in relatively simple ways. Today, their methods are far more sophisticated:

• use of "mixers" (services that pool and mix funds to conceal their origin),
• use of "bridges", which connect blockchains to transfer value from one chain to another,
• exploitation of DeFi platforms (decentralised finance) to swap assets rapidly,
• layering of multiple transaction tiers to cover their tracks. The goal : to make investigations more complex, slow down or block the tracing of illicit flows.

*Europol is warning of several particularly concerning developments.*

First, fraud and scams involving crypto-assets continue to rise, ranging from fake projects and fraudulent investments to hacks designed to steal funds.

The agency also notes that crypto-assets are sometimes used to circumvent economic sanctions, complicating the work of authorities.

Furthermore, new specialised players are now offering services to help criminals launder funds via cryptocurrencies: a form of "money-laundering as a service".

Finally, Europol *highlights the growing existence of structured scam centres abroad*, often located in jurisdictions with laxer or weaker regulatory frameworks.

According to the agency, these trends now contribute significantly to the global illicit economy and warrant heightened attention.

(Europol)

To curb these abuses, Europol highlights several priorities:

1. 1.Improve international cooperation Criminals operate globally; states, agencies and private actors must therefore work hand in hand.
2. 2.Standardise investigations Common rules are needed to analyse blockchains, seize crypto-assets and gather digital evidence in a legally robust manner.
3. 3.Train specialists Public services (police, judiciary, customs) must have staff trained in crypto technologies and new investigation typologies.
4. 4.Work with the private sector Crypto platforms, banks, fintechs, startups... all must collaborate with the authorities (information sharing, alerts, compliance) to spot suspicious flows.
5. 5.Strengthen regulation Stricter rules and tailored legal frameworks must be applied to limit the loopholes exploited by criminals and regulate the crypto ecosystem.

(Europol)

*These recommendations show that the future of the crypto sector largely relies on its ability to enhance security.*

Better oversight and closer cooperation between public and private actors would help reduce abuse and offer greater protection to users.

• For businesses, this means making greater efforts to comply with regulations and avoid being used for illicit purposes.
• For individuals, *these developments could offer a more stable and reliable environment in which risks are better controlled.*

The goal is not to stifle innovation, but to foster healthy growth in the sector, where technology and security advance together.

For beginners, it is important to understand that crypto-assets offer many opportunities, but they are not without risk.

Criminals now use increasingly technical methods to obscure their activities. In the face of these practices, international cooperation, training for stakeholders and the establishment of a robust regulatory framework have become essential to better secure the sector.

*For users and investors alike, this means remaining vigilant, choosing reliable and transparent platforms, and staying informed about compliance rules.*

The sector is currently undergoing a major transition. Reputable players are now seeking to comply with standards and collaborate with the authorities.

This evolution represents a genuine mark of confidence for the future of the market.