Share this article
EU Law Enforcement: Digital Currency is Impeding Investigations
Law enforcement agencies in the EU have said that the growing use of digital currencies is impairing their efforts.
By Stan Higgins
Updated Sep 11, 2021, 1:09 p.m. Published Mar 14, 2017, 4:00 p.m.
Make us preferred on Google
Law enforcement agencies in the European Union are alleging that the growing use of digital currencies is impairing their efforts.
Europol, the EU's top police agency, and Eurojust, an agency focused on cross-border judicial matters, released a joint paper on 13th March that outlines a series of cybercrime challenges they face. According to the paper, 2016 was a year that saw a rise in the number of investigations involving the tech, though the agencies didn't provide specific figures.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Yet that usage is having a material impact, according to Europol and Eurojust.
The agencies state in the paper:
"...the widening criminal use of decentralised virtual currencies and the increased use of tumbler/mixer services, effectively prevent law enforcement to ‘follow the money’ and significantly complicate the possibilities for asset recovery and the prevention of fraudulent transactions."
It's a significant admission from the Europol perspective, as the agency regularly partners with others on education and training efforts. (It inked a cooperative deal with blockchain analytics startup Chainalysis in early 2016.)
The paper also comes as lawmakers in the economic bloc are advancing legislation that could lead to the creation of a central database retaining information about digital currency users.
The two agencies later outline how a lack of cohesive legislation about digital currencies – and an absence of case law – further hamper law enforcement efforts.
"Case law (jurisprudence) can be a valuable tool to compensate for a lack of specific legislation, but unfortunately little case law exists with regard to new developments (eg virtual currencies, anonymization tools and various technology-driven criminal modi operandi)," the paper concludes.
European flag image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus
Some investors have revived concerns that quantum computing could threaten bitcoin, but analysts and developers say recent price weakness reflects market structure.
What to know:
- Bitcoin’s recent price stagnation has sparked a renewed debate over quantum-computing risks, with investor Nic Carter arguing that quantum fears are already shaping market behavior.
- On-chain analysts and prominent investors counter that the slowdown is better explained by large holders taking profits and increased supply hitting the market around the $100,000 level.
- Most bitcoin developers still view quantum attacks as a distant, manageable threat, noting that proposed upgrades like BIP-360 provide a path to quantum-resistant security and are unlikely to explain short-term price moves.
Top Stories
