Representatives from Armenia, Azerbaijan, the Republic of Moldova and Ukraine joined a regional roundtable focused on strengthening the capacity of investigators and prosecutors to tackle economic crime involving crypto-assets and decentralised finance (DeFi).
Crypto-assets and DeFi are changing the way money can be transferred, exchanged and invested. Unlike traditional financial services, many DeFi activities can take place directly between users through technology-based platforms and protocols, without relying on traditional financial institutions. While these technologies have legitimate use, they can also be exploited to move and conceal illegal funds, creating new challenges for law enforcement.
The round table combined expert presentations covering both theoretical and practical aspects of crypto-asset and DeFi investigations with peer exchange with practitioners from different countries. Prosecutors and law enforcement professionals who were participants of the event explored how illegal financial activity involving cryptocurrencies and DeFi can be investigated in practice. This included tools and approaches for tracing crypto-asset transactions, following the movement of funds across different blockchain networks, and using blockchain information as evidence.
Strengthening these capacities is increasingly important as new technologies can be exploited to make illicit financial flows more difficult to detect and trace. Effective investigations therefore require not only appropriate investigative tools, but also a sound understanding of the technologies underpinning DeFi and the specific challenges they present. Equipping investigators and prosecutors with specialised knowledge and practical skills contributes to more effective responses to money laundering and terrorist financing risks associated with crypto-assets and DeFi, particularly in cases involving multiple jurisdictions.
The recently adopted Additional Protocol to the Council of Europe Convention on Laundering, Search, Seizure, and Confiscation of the Proceeds from Crime and on the Financing of Terrorism (Warsaw Convention CETS No. 198) provided an important reference point for discussions on international cooperation. It strengthens the framework for asset recovery, including by facilitating competent authorities’ access to data held by virtual asset service providers.
The roundtable also served as a forum for exchange between different countries. This approach addressed the challenge of catching up with the technology advancements, promoting synergies and a coherent response to current and emerging challenges related to crypto-assets and DeFi. The broader exchange also provided an opportunity to strengthen professional networks and cooperation among investigators, prosecutors and other competent authorities from participating countries.
This event is part of the European Union and the Council of Europe joint programme “Partnership for Good Governance”, co-funded by the European Union and the Council of Europe, and implemented by the Council of Europe, in the framework of the regional project on “Strengthening measures to prevent and combat economic crime in the Eastern Partnership region”.
