Purpose – The current study examines the use of cryptocurrencies in illicit financial activities, underscoring the crucial need for regulation in this area. It further analyses how major jurisdictions worldwide have approached the regulation of such assets.

Design/methodology/approach –  The study employs a thematic literature review of academic articles, regulatory documents, and institutional reports, categorising them into two main themes: the use of cryptocurrencies in illicit activities and the related global regulatory responses.

Findings – The findings of the study reflect that cryptocurrencies facilitate money laundering, tax evasion, among others. In this regard, the EU’s MiCA represents a comprehensive regime for crypto asset markets, while the US relies on fragmented crypto assets oversight from multiple bodies. The regulatory approaches in other areas, like Asia, Africa and Australia, are diverse, ranging from complete prohibition to emerging oversight.

Originality/value –  This study integrates insights on crypto-related financial crimes with an analysis of global regulatory landscapes, providing a framework that underscores both progress and continuous regulatory gaps that cybercriminals can exploit. It highlights the need for harmonised oversight, as well as enhanced involvement from practitioners across industries to support accountability and market integrity in the crypto space.

1. Abouelela, O., Diab, A., & Saleh, S. (2025). Digital assets, auditor IT experience, and material misstatements: Evidence from a developing country. International Journal of Innovative Research and Scientific Studies, 8(2), 1016-1030. https://doi.org/10.53894/ijirss.v8i2.5402
2. Agarwal, U., Rishiwal, V., Tanwar, S., & Yadav, M. (2024). Blockchain and crypto forensics: Investigating crypto frauds. International Journal of Network Management, 34(2), e2255. https://doi.org/10.1002/nem.2255
3. Akter, M., Kummer, T. F., & Yigitbasioglu, O. (2024). Looking beyond the hype: The challenges of blockchain adoption in accounting. International Journal of Accounting Information Systems, 53, https://doi.org/10.1016/j.accinf.2024.100681
4. Alnasaa, M., Gueorguiev, N., Honda, J., Imamoglu, E., Mauro, P., Primus, K., & Rozhkov, D. (2022). Crypto-assets, corruption, and capital controls: Cross-country correlations. Economics Letters, 215, 110492. https://doi.org/10.1016/j.econlet.2022.110492
5. Alsalmi, N., Ullah, S., & Rafique, M. (2023). Accounting for digital currencies. Research in International Business and Finance, 64, https://doi.org/10.1016/j.ribaf.2023.101897
6. Angeline, Y. K. H., Chin, W. S., Melissa, T. T. T., & Saleh, Z. (2021). Accounting Treatments for Cryptocurrencies in Malaysia: The Hierarchical Component Model Approach.Asian Journal of Business and Accounting, 14(2), 137-171. https://doi.org/10.22452/ajba.vol14no2.5
7. AUSTRAC (Australian Transaction Reports and Analysis Centre). (2023). Digital currency exchange providers. Last accessed on 28 November 2025 at https://www.austrac.gov.au/business/your-industry/digital-currency-cryptocurrency/digital-currency-exchange-providers
8. Berdiev, A. N., Goel, R. K., & Saunoris, J. W. (2024). Global cryptocurrency use, corruption, and the shadow economy: New insights into the underlying linkages.American Journal of Economics and Sociology, Press. https://doi.org/10.1111/ajes.12566
9. Blahušiaková, M. (2022). Accounting for Holdings of Cryptocurrencies in the Slovak Republic: Comparative Analysis. Contemporary Economics, 16(1), 16–31. https://doi.org/10.5709/ce.1897-9254.466
10. Chou, J.H., Agrawal, P. & Birt, J. (2022). Accounting for crypto-assets: stakeholders’ perceptions. Studies in Economics and Finance, 39(3), 471-489. https://doi.org/10.1108/SEF-10-2021-0469
11. Cornerstone Research. (2024). SEC cryptocurrency enforcement: 2024 update. Last accessed on 17 November 2025 at https://www.cornerstone.com/wp-content/uploads/2025/01/SEC-Cryptocurrency-Enforcement-2024-Update.pdf
12. Council of the European Union (2022). Digital finance: agreement reached on European crypto-assets regulation (MiCA). Last accessed on 17 November 2025 at https://www.consilium.europa.eu/en/press/press-releases/2022/06/30/digital-finance-agreement-reached-on-european-crypto-assets-regulation-mica/
13. Cyrus, R. (2023). Custody, Provenance, and Reporting of Blockchain and Cryptoassets. In Baker, H.K., Benedetti, H., Nikbakht, E. and Smith, S.S. (Ed.), The Emerald Handbook on Cryptoassets: Investment Opportunities and Challenges, Emerald Publishing Limited, Bingley, 233-248. https://doi.org/10.1108/978-1-80455-320-620221016
14. Delva Benavides, J. E., & Torres Amaya, F. E. (2022). Legal, Tax and Accounting Treatment of Cryptocurrencies in Mexico. Global Jurist, 22(2), 261–280. https://doi.org/10.1515/gj-2021-0061
15. Derun, I., & Mysaka, H. (2022). Digital assets in accounting: the concept formation and the further development trajectory. Economic Annals-ХХI, 195(1-2), 59-70. https://doi.org/10.21003/ea.v195-06
16. Dragomir, V. D., & Dumitru, V. F. (2023). Recognition and Measurement of Crypto-Assets from the Perspective of Retail Holders. FinTech, 2(3), 543-559. https://doi.org/10.3390/fintech2030031
17. El Maknouzi, M. E. H., & Sadok, H. (2021). Regulation of virtual currencies in the United Arab Emirates: accounting for the emerging public/private distinction. Development Studies Research, 8(1), 346–355. https://doi.org/10.1080/21665095.2021.1980413
18. FinCEN (Financial Crimes Enforcement Network). (2019). Advisory on illicit ativity involving convertible virtual currency. US Department of the Treasury. Last accessed on 5 November 2025 at https://www.fincen.gov/system/files/advisory/2019-05-10/FinCEN%20Advisory%20CVC%20FINAL%20508.pdf
19. Forvis Mazars (2024). Market in crypto assets regulation: where we stand now. Last accessed on 20 November 2025 at https://financialservices.forvismazars.com/market-in-crypto-assets-regulation-where-we-stand-now/
20. Gilbert, M.J., Khoury, G., & Golda, Z. (2022). Crypto Enforcement Actions and Regulatory Guidance Roundup. Corporate & Securities Law Blog. Last accessed on 26 November 2025 at https://www.corporatesecuritieslawblog.com/2022/06/crypto-enforcement-actions-regulatory-guidance/
21. Hubbard, B. (2023). Decrypting crypto: implications of potential financial accounting treatments of cryptocurrency. Accounting Research Journal, 36(4-5), 369-383. https://doi.org/10.1108/ARJ-10-2022-0279
22. Jorge, S., Silva, A., & Nogueira, S. P. (2025). A thematic literature review on politicians’ use of financial and non-financial information: Insights and future directions. Public Money & Management, 1-13. https://doi.org/10.1080/09540962.2025.2579833
23. Kerr, D. S., Loveland, K. A., Smith, K. T., & Smith, L. M. (2023). Cryptocurrency risks, fraud cases, and financial performance. Risks, 11(3), 51. https://doi.org/10.3390/risks11030051
24. Kozieł, M. (2024). New Regulation of Crypto-Assets in the European Union as an Opportunity and a Threat for Entrepreneurs. In The Global Conference on Entrepreneurship and the Economy in an Era of Uncertainty, pp. 791-805. Singapore, Springer Nature Singapore.
25. Martinčević, I., Sesar, V., Buntak, K., & Miloloža, I. (2022). Accounting and Tax Regulation of Cryptocurrencies. Interdisciplinary Description of Complex Systems, 20(5), 640-661. https://doi.org/10.7906/indecs.20.5.9
26. Mehta, K., & Chawla, S. (2024). Illuminating the dark corners: a qualitative examination of cryptocurrency’s risk.Digital Policy, Regulation and Governance, 26(2), 188-208. https://doi.org/10.1108/DPRG-10-2023-0147
27. Parrondo, L. (2023). Cryptoassets: Definitions and accounting treatment under the current International Financial Reporting Standards framework. Intelligent Systems in Accounting, Finance and Management, 30(4), 208-227. https://doi.org/10.1002/isaf.1543
28. Ram, A., Maroun, W., & Garnett, R. (2016). Accounting for the Bitcoin: Accountability, neoliberalism and a correspondence analysis. Meditari Accountancy Research, 24(1), 2–35. https://doi.org/10.1108/MEDAR-07-2015-0035
29. Ramassa, P., & Leoni, G. (2022). Standard setting in times of technological change: accounting for cryptocurrency holdings. Accounting, Auditing and Accountability Journal, 35(7), 1598–1624. https://doi.org/10.1108/AAAJ-10-2020-4968
30. Scarcella, L. (2021). “Catch Me If I Chain”: Latest Developments in Extending Reporting Obligations and Automatic Exchange of Information to Cryptocurrency and Crypto-Asset Transactions. Australian Tax Review - Blockchain Special Issue. https://doi.org/10.2139/ssrn.4063843
31. Schmitz, J., & Leoni, G. (2019). Accounting and auditing at the time of blockchain technology: a research agenda. Australian Accounting Review, 29(2), 331-342. https://doi.org/10.1111/auar.12286
32. Smith, S. S., Petkov, R., & Lahijani, R. (2019). Blockchain and cryptocurrencies – considerations for treatment and reporting for financial services professionals. The International Journal of Digital Accounting Research, 19, 59–78. https://doi.org/10.4192/1577-8517-v19_3
33. Sori, Z. M., Mohamad, S., Yasmin Ahmad, A. A., & Hisham Osman, M. N. (2024). The Accounting Treatment of Cryptocurrencies: The Perspective of Current Accounting Standards. International Journal of Economics & Management, 18(2). http://doi.org/10.47836/ijeam.18.2.03
34. Taher, S. S., Ameen, S. Y., & Ahmed, J. A. (2024). Advanced Fraud Detection in Blockchain Transactions: An Ensemble Learning and Explainable AI Approach.Engineering, Technology & Applied Science Research, 14(1), 12822-12830.  https://doi.org/10.48084/etasr.6641
35. Teh, S. Y., Yap, A. K. H., & Wong, S. C. (2020). Accounting treatment of cryptocurrency: a Malaysian context. Management & Accounting Review, 19(3), 119-149. https://doi.org/24191/mar.v19i03-06
36. Teichmann, F. M. J., Boticiu, S. R., & Sergi, B. S. (2024). The EU MiCA Directive–chances and risks from a compliance perspective. Journal of Money Laundering Control, 27(2), 275-283. https://doi.org/10.1108/JMLC-02-2023-0030
37. Tiron-Tudor, A., Mierlita, S., & Manes Rossi, F. (2024). Exploring the uncharted territories: a structured literature review on cryptocurrency accounting and auditing. The Journal of Risk Finance, 25(2), 253-276. https://doi.org/10.1108/JRF-10-2023-0258
38. Trizotto, R. C. A., Nascimento, L. D. S., da Silva, J. P. T., & Zawislak, P. A. (2024). Sustainability, business strategy and innovation: a thematic literature review.Sustainability Accounting, Management and Policy Journal, 15(6), 1338-1377. https://doi.org/10.1108/SAMPJ-03-2023-0136
39. Vincent, N. E., & Davenport, S. A. (2022). Accounting Research Opportunities for Cryptocurrencies. Journal of Emerging Technologies in Accounting, 19(1), 79–93. https://doi.org/10.2308/JETA-19-11-14-46
40. Wang, Z. (2023). Money laundering and the privacy design of central bank digital currency. Review of Economic Dynamics, 51, 604-632. https://doi.org/10.1016/j.red.2023.06.004
41. Wronka, C. (2024). Crypto-asset activities and markets in the European Union: issues, challenges and considerations for regulation, supervision and oversight. Journal of Banking Regulation, 25(1), 84-93. https://doi.org/10.1057/s41261-023-00217-8
42. Yan, H., Yan, K., & Gupta, R. (2022). A Survey of the Accounting Industry on Holdings of Cryptocurrencies in Xiamen City, China. Journal of Risk and Financial Management, 15(4), 175. https://doi.org/10.3390/jrfm15040175