CRYPTO-ASSETS IN THE SHADOW ECONOMY: A LEGAL ANALYSIS OF THE ASSET RECOVERY USED IN CRIMINAL ACTIVITIES
Keywords:
crypto-assets, laundering, asset recovery, international documents, legal framework, informal networksAbstract
This article examines the role of crypto-assets, which became an instrument for committing a wide range of financial and/or corruption-related crimes, including money laundering, financing terrorism, and obtaining illicit assets in the digital economy era. The decentralized nature, anonymity, and transnational character of cryptocurrencies and other virtual assets create new challenges for law enforcement bodies and regulators, which are also explored in the article. Particular emphasis is placed on the relevant international legal frameworks, such as the United Nations Convention Against Corruption (UNCAC), the FATF Recommendations, and the OECD Crypto-Asset Reporting Framework (CARF). In addition to the domestic legislation of the Republic of Uzbekistan that contains recent legal definitions, licensing requirements, and liability mechanisms for criminal illicit activities involving crypto-assets. The paper will also provide a review of academic views from both international and Uzbek scholars regarding the regulatory, forensic, and criminological aspects of crypto-assets. Based on a combination of comparative and analytical methodologies, the research identified existing legal voids, institutional shortcomings, and best practices derived from international experience. These findings serve to develop practical recommendations to improve the efficiency of traceability, freezing, seizure, and recovery of assets at the national level in order to strengthen Uzbekistan’s compliance with global anti-financial crime standards in an age of digital transformation.
References
Aidoo, S., Venditti, A., Döhner, H., Liang, W., & Hamzah, F. (2025). Cryptocurrency and financial crime: Emerging risks and regulatory responses. https://www.researchgate.net/publication/393091199_Cryptocurrency_and_Financial_Crime_Emerging_Risks_and_Regulatory_Responses
Ataniyazov, J. K., & Azizkhonov, Sh. M. (2025). Concept, content and distinctive features of crypto-assets. In M. M. Mamasiddiqov (Ed.), Kiberhuquq: muammolar va rivojlantirish istiqbollari = Cyber Law: Problems and Prospects of Development [Cyber Law: Problems and Prospects of Development] (p. 395). Tashkent: Impress Media.
Asterium. (n.d.). https://asterium.uz/
Bastrykin, A. I. (2021). Rassledovanie legalizatsii dokhodov, poluchennykh prestupnym putem, i finansirovaniya terrorizma: praktika Sledstvennogo komiteta Rossii [Investigation of the legalization of criminal proceeds and the financing of terrorism: Practice of the Investigative Committee of Russia]. Vestnik Sankt-Peterburgskogo Universiteta. Pravo [Saint Petersburg University Law Review], 3, 493–501. https://doi.org/10.21638/spbu14.2021.301
Boulenguer, C. (2025). Crypto-assets and the financing of the criminal economy: Dangerous liaisons? https://www.iris-france.org/en/116909/
Bostwick, L., Bartlett, N., Cronje, H., & Abernathy, T. J. II. (2021). Managing seized and confiscated assets: A guide for practitioners. Vienna: United Nations Office on Drugs and Crime; Washington, D.C.: World Bank / Stolen Asset Recovery Initiative.
Code of the Republic of Uzbekistan on Administrative Responsibility. (1994, September 22). https://lex.uz/docs/97664
Republic of Uzbekistan. (1994, September 22). Criminal Code https://lex.uz/docs/111453
Elsayed, S. (2023). Cryptocurrencies, corruption and organised crime: Implications of the growing use of cryptocurrencies in enabling illicit finance and corruption. Bergen: U4 Anti-Corruption Resource Centre, Chr. Michelsen Institute. https://www.u4.no/publications/cryptocurrencies-corruption-and-organised-crime
Eurasian Group on Combating Money Laundering and Financing of Terrorism. (2022). Mutual evaluation report of the Republic of Uzbekistan. Moscow: EAG.
Financial Action Task Force. (2012–2025). International standards on combating money laundering and the financing of terrorism & proliferation (FATF Recommendations). Paris: FATF. https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatf-recommendations.html
Financial Action Task Force. (2020, September). Virtual assets red flag indicators of money laundering and terrorist financing. Paris: FATF. https://www.fatf-gafi.org/content/dam/fatf-gafi/reports/Virtual-Assets-Red-Flag-Indicators.pdf
Gazeta.uz. (2025, January 17). https://www.gazeta.uz/uz/2025/01/17/binance/
Khamzaev, D. (2021). Sovershenstvovanie deyatelnosti pravookhranitelnykh organov v borbe s transnatsional’nymi finansovymi prestupleniyami [Improving the activities of law enforcement agencies in combating transnational financial crimes] [PhD dissertation]. Academy of the Prosecutor General’s Office of the Republic of Uzbekistan.
Kunev, D. A. (2022). Pravovye osnovy i metodika mezhgosudarstvennogo rozyska, aresta, konfiskatsii i vozvrata prestupnykh aktivov v ugolovnom sudoproizvodstve [Legal foundations and methodology of cross-border search, seizure, confiscation and return of criminal assets in criminal proceedings]. Moscow: UNITI-DANA.
King, C., Walker, C., & Gurulé, J. (Eds.). (2018). The Palgrave handbook of criminal and terrorism financing law. Cham: Springer International Publ. https://doi.org/10.1007/978-3-319-64498-1
Kolenko, E. V. (2025). Perspektivy primeneniya iskusstvennogo intellekta v sfere pravoprimeneniya [Prospects for the use of artificial intelligence in the field of law enforcement]. In M. M. Mamasiddiqov (Ed.), Kiberhuquq: muammolar va rivojlantirish istiqbollari [Cyber Law: Problems and Prospects of Development]. Tashkent: Impress Media.
Kolenko, E. V. (2023). Otvetstvennost’ za poluchenie vzyatki: perspektivy sovershenstvovaniya ugolovnogo zakonodatel’stva Respubliki Uzbekistan v svete mezhdunarodnykh standartov [Liability for accepting a bribe: Prospects for improving the criminal legislation of the Republic of Uzbekistan in light of international standards] [PhD dissertation]. Tashkent State University of Law.
Kudratillaev, Kh. Z. (2022). Tipologii legalizatsii dokhodov, poluchennykh prestupnym putem, s ispolzovaniem kriptovalyutnykh instrumentov [Typologies of money laundering using cryptocurrency instruments]. Tashkent: Tashkent State University of Law.
Republic of Uzbekistan Law (2004, August 26). On countering the legalization of proceeds from criminal activities, the financing of terrorism and the financing of the proliferation of weapons of mass destruction. No. 660-II. https://lex.uz/docs/283717
Republic of Uzbekistan Law (2008, July). On the accession to the United Nations Convention against Corruption. No. LRU-158. https://lex.uz/docs/1369505
Republic of Uzbekistan (2024, January 19). Law No. LRU-899. https://lex.uz/docs/6763724
Organisation for Economic Co-operation and Development. (2022). Crypto-asset reporting framework and amendments to the common reporting standard. Paris: OECD. https://www.oecd.org/tax/exchange-of-tax-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standard.htm
Organisation for Economic Co-operation and Development. (2025, September). Jurisdictions committed to implement the Crypto-Asset Reporting Framework (CARF) and begin exchanges in 2027 or 2028. Paris: OECD. https://www.oecd.org/content/dam/oecd/en/networks/global-forum-tax-transparency/commitments-carf.pdf
National Agency of Perspective Projects of the Republic of Uzbekistan. (2022, August 15). Order of the Director No. 3380. https://lex.uz/docs/6158224
National Agency of Perspective Projects of the Republic of Uzbekistan. (2022, November 28).Order of the Director No. 3397. https://lex.uz/docs/6299481
Pop, L., Kotlyar, D., & Rossi, I. (2023). Asset and interest disclosure: A technical guide to an effective form. Washington, D.C.: Stolen Asset Recovery Initiative, World Bank.
President of the Republic of Uzbekistan. (2025, November 3). Effectiveness of work on combating drug-related crimes, and in the field of cybersecurity and prosecutorial oversight to be enhanced. https://president.uz/en/lists/view/8617
Resolution of the National Agency of Perspective Projects of the Republic of Uzbekistan No. 3 & Department for Combating Economic Crimes under the Prosecutor General’s Office of the Republic of Uzbekistan. (2021, June 7–8). https://lex.uz/docs/5450933
Republic of Uzbekistan. (2024, December 25). Resolution registered No. 3591. https://lex.uz/docs/7282772
President of the Republic of Uzbekistan (2017, July 27). Resolution No. RP-3150. https://lex.uz/docs/3280183
Sotiropoulou, A., Brun, J.-P., Gray, L., Scott, C., & Stephenson, K. M. (2021). Asset recovery handbook: A guide for practitioners (2nd ed.). Washington, D.C.: World Bank / StAR Initiative http://hdl.handle.net/10986/34843
Sochneva, E. N., Nasyrov, Yu. I., Dulepova, V. B., & Nurieva, E. V. (2024). Analiz mekhanizmov rassledovaniya prestupleniy, svyazannykh s vyvodom finansovykh aktivov za rubezh [Analysis of mechanisms for investigating crimes involving the withdrawal of financial assets abroad]. Ekonomika, predprinimatel’stvo i pravo [Economics, Entrepreneurship and Law], 14(7), 3435–3454. https://doi.org/10.18334/epp.14.7.121292
Tcrypto. (n.d.). https://tcrypto.uz/
United Nations Convention against Corruption. (2003, October). New York: United Nations. https://www.unodc.org/unodc/en/corruption/convention.html
UZNEX. (n.d.). https://www.uznex.com/
Wawrosz, P., & Lansky, J. (2021). Cryptocurrencies and corruption. Ekonomický časopis, 69(7), 687–705. https://doi.org/10.31577/ekoncas.2021.07.02
Yang, M.-Y., Chen, Z.-K., Hu, J., Chen, Y., & Wu, X. (2025). Multidimensional information spillover between cryptocurrencies and China’s financial markets under shocks from stringent government regulations. Journal of International Financial Markets, Institutions and Money, 100(C), 101164. https://doi.org/10.1016/j.intfin.2024.101164
Zemskov, V. V., & Prasolov, V. I. (2021). Voprosy finansovykh rassledovaniy i vozvrata pokhishchennykh aktivov [Issues of financial investigations and recovery of stolen assets]. Finansy: teoriya i praktika [Finance: Theory and Practice], 25(2), 185–198. https://doi.org/10.26794/2587-5671-2021-25-2-185-198
Downloads
Published
Issue
Section
License
Copyright (c) 2026 JURISPRUDENCE
This work is licensed under a Creative Commons Attribution 4.0 International License.
