A theoretical and practical analysis of the constituent elements of the crime of terrorist financing involving cryptocurrencies

Abstract

Cryptocurrencies constitute an operational and strategic channel for the financing of terrorism, making this a matter of utmost concern for regulators worldwide. The criminal offense of terrorist financing—as defined in Spain under Article 576 of the Criminal Code—includes a wide range of core actions, such as soliciting, acquiring, possessing, using, converting, and transferring funds for terrorist purposes, all of which can be carried out through the use of crypto-assets. This paper focuses on analyzing the potential of cryptocurrencies to facilitate terrorist financing by examining each of the typical behaviors encompassed by the criminal offense. The relevance of this study lies in achieving a precise legal understanding of the phenomenon, contributing to its appropriate regulatory delimitation, and anticipating emerging criminal scenarios.