CRYPTOASSET GOVERNANCE AND REGULATORY COMPLIANCE: GLOBAL CHALLENGES IN PREVENTING DIGITAL FINANCIAL CRIMES

Abstract

The advent and rapid rise of crypto‑assets have transformed the global financial landscape, driving innovation while also presenting substantial challenges in combating financial crime, notably money laundering (ML) and terrorist financing (TF). This article explores the complexities arising from the decentralized and pseudonymous nature of crypto‑assets, which are exploited for criminal purposes, resulting in estimated annual money laundering volumes ranging from US $800 billion to US $2 trillion worldwide. Through an analysis of the Brazilian regulatory framework (Law No 14.478/2022 and regulations issued by the Central Bank of Brazil) and a comparison with international normative approaches (FATF, European Union, United States), this study identifies regulatory gaps and inconsistencies. We propose a critical discussion on the effectiveness of existing measures, especially considering the technical limitations of asset freezing and the ongoing movement of funds by sanctioned entities. Finally, we outline future strategies, emphasizing international cooperation; investment in advanced technologies such as blockchain analytics, artificial intelligence (AI), and embedded supervision; and the need for a delicate balance between fostering innovation and ensuring financial security and integrity in the digital era.