CRYPTO-ASSETS IN THE SHADOW ECONOMY: A LEGAL ANALYSIS OF THE ASSET RECOVERY USED IN CRIMINAL ACTIVITIES
Abstract
This article examines the role of crypto-assets, which became an instrument for committing a wide range of financial and/or corruption-related crimes, including money laundering, financing terrorism, and obtaining illicit assets in the digital economy era. The decentralized nature, anonymity, and transnational character of cryptocurrencies and other virtual assets create new challenges for law enforcement bodies and regulators, which are also explored in the article. Particular emphasis is placed on the relevant international legal frameworks, such as the United Nations Convention Against Corruption (UNCAC), the FATF Recommendations, and the OECD Crypto-Asset Reporting Framework (CARF). In addition to the domestic legislation of the Republic of Uzbekistan that contains recent legal definitions, licensing requirements, and liability mechanisms for criminal illicit activities involving crypto-assets. The paper will also provide a review of academic views from both international and Uzbek scholars regarding the regulatory, forensic, and criminological aspects of crypto-assets. Based on a combination of comparative and analytical methodologies, the research identified existing legal voids, institutional shortcomings, and best practices derived from international experience. These findings were used to develop practical recommendations to improve the efficiency of traceability, freezing, seizure, and recovery of assets at the national level in order to strengthen Uzbekistan’s compliance with global anti-financial crime standards in an age of digital transformation.