Profit-Driven Abuses of Virtual Currencies
نویسنده
چکیده
This paper traces the rise of virtual currencies and surveys their more popular incarnations, such Liberty Reserve and Bitcoin. Using cash and conventional electronic payment networks (e.g. Visa and PayPal) as a reference point, we delineate the evolution of financial abuses in the face of virtual currencies. In particular, we describe the properties of virtual currencies that make them susceptible to abuses. We also discuss how criminals can exploit virtual currencies for profit, and how these malicious activities can be countered. We find that the very benefits which have made virtual currencies popular are also facilitating crimes.
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