MONEY LAUNDERING IN THE DIGITAL AGE IN BRAZIL: LEGAL CHALLENGES FACING THE DECENTRALIZATION AND ANONYMITY OF CRYPTOCURRENCIES

Abstract

Money laundering reveals itself as a phenomenon that seeks to veil the illicit origin of assets to reinsert them into the formal economy with a legitimate appearance. This study dissects the legal challenges of this crime at the height of the digital age, specifically regarding the decentralization and anonymity of cryptocurrencies. The transition from the traditional financial system to the crypto-asset environment, operated via blockchain technology, imposes disruptive obstacles to state oversight due to the absence of a central controlling authority. The study examines the gaps in Law No. 9,613/1998 and the relevance of the new Legal Framework for Virtual Assets, Law No. 14,478/2022, which designated the Central Bank as the regulator for virtual asset service providers. The core problem lies in the opacity of digital transactions that challenge current legal instruments for prevention and combat. Methodologically, the research assumes a descriptive nature with a qualitative approach and a bibliographic review of national and international doctrines, including Financial Action Task Force (FATF standards and COAF resolutions. It is concluded that the effectiveness of law enforcement depends on the adaptation of compliance norms, such as Know Your Customer, and the implementation of advanced blockchain analysis technologies to mitigate capital concealment risks in decentralized networks. Such a scenario demands the strengthening of international legal cooperation and specialized training for investigative bodies. The convergence between exchange monitoring and data intelligence becomes, therefore, the indispensable mechanism to bypass anonymity layers and ensure the integrity of the global financial system. It is also argued that the borderline nature of these assets requires global regulatory reconciliation, since the neutralization of transnational organized crime depends on overcoming jurisdictional barriers, ensuring that technological innovation does not become a haven for current economic impunity.