The Impact of Cryptocurrency on International Relations and Sanctions

This study is focused on the analysis and impact of cryptocurrencies on international relations and illicit activities along with the lawmakers' approach towards illicit activists and crimes that have picked up since the creation of Cryptocurrencies. The massive growth of cryptocurrencies can be noticed by seeing ATMs, wallet users, and businesses accepting Cryptocurrency. While this new technology is being developed, various authorities have been forced to set regulations, given the expansive growth of Cryptocurrency over the years. There are multiple terminologies used to describe Cryptocurrency from one jurisdiction to another. One of the most common actions identified across jurisdictions is the Government-issued notices issued to the Central Banks to regulate cryptocurrencies. These warnings issued by various countries majorly center around the fact that cryptocurrencies may create a root for illegal activities such as money laundering, terrorism, and other organized crimes. Cryptocurrencies are favorable due to their trade speed, cost, and security. The total market cap peaked at more than $2 trillion on November 4th, 2021, with up to 7, 616 Cryptocurrencies, according to investing.com. There are instances where cybercriminals made hostages extort payment in terms of Cryptocurrencies. Most crowd funding is scams and takes away the money. There are claims that as soon as cryptocurrencies became popular and valuable, hackers and other criminals started to demand crypto instead of PayPal or Western Union. This high demand for crypto in the crime world emerged as a significant concern for bankers and governors, with criminals exploiting digital financial services to perpetrate money laundering and other types of crimes.