Digital currencies are a means of money laundering and tax evasion

Abstract

Abstract: Digital currencies (encrypted virtual currencies) are one of the modern technological phenomena that appeared nearly two decades ago and are widely used among multiple segments of society, among amateurs and professionals, ordinary individuals and merchants, private institutions and some entities, and the purpose of their use is usually to reduce fees, or avoid paying tax obligations for financial transactions conducted through them, or avoid criminal responsibility for money laundering or terrorist financing. Despite the many advantages that these digital currencies enjoy. In Iraq, they are described as illegal because they were not issued by an approved official body and were not regulated by specific legal rules. Digital currencies (encrypted virtual currencies) are used illegally for the purposes mentioned above. Given the risks resulting from illegal dealing in it, it requires a serious stance from the legislator to protect the economy, national security, and public money.