Conceptualizing Criminality on Cryptocurrency Markets

• In Event: EUROC 9 – Digital Technologies and Organisational Crimes

Abstract

The paper provides a conceptualization and demarcation of criminality on cryptocurrency markets. Based on the previous work of the author, the core notion of the conceptualization is embeddedness. The paper will distinguish between three different forms of embeddedness:
1. Techincal embeddedness. This refers to the technological features of cryptocurrency markets that sets them apart from legacy markets and which fundamentally shape everyday transactions and investment decisions. These include a, the unalterable features of crypto markets (such as the decentralized nature of the blockchain, the modalities of ownership (wallets, keys), smart contracts, etc.) as well as b, optional technological features (decentralized and peer to peer exchanges; privacy coins; crypto mixers and tumblers; etc.).
2. Social and cultural embeddedness. These refer to the social construction of the cryptocurrency markets, including a, the ideological underpinnings of cryptocurrency markets, such as distrust in the state and “legacy” financial systems; b, cultural and cognitive frames about investment behaviour and economic rationality; c, Everyday practices on the market.
3. Political and legal embeddedness. these refer to the various forms of state interventions (or the lack of them) that shape market institutions, and everyday market practice, those of criminal nature among them: a, the political economy of crypto: policy concepts and approaches to crypto; 2, the regulation of cryptocurrency markets and cryptocrime, including, among others: the legal status of cryptocurrencies; the definition of cryptocrimes; the applicability of existing regulation such as AML or fraud statues to crypto; the drawing of jurisdictional boundaries, etc.

Author

• Csaba Győry, ELTE University Faculty of Law, Budapest /Institute of Legal Studies, Centre for Social Sciences, Hungarian Academy of Sciences