Crypto’s sophistication leads to tougher sentences for Australian criminals (study)
A study by Melbourne’s RMIT University estimated that Australian criminals who used cryptocurrencies, such as bitcoin, in their schemes had received harsher penalties than those who used fiat.
The study outlined the role of digital assets on the Dark Web, claiming they are among the most important payment methods supported there.
Less mercy for criminals using crypto
The analysis reviewed 59 cases involving people who have used cryptocurrencies in their crimes between 2013 and 2022. Almost 80% were related to drug trafficking, while the remaining charges included money laundering and firearms.
Lisanne Adam – co-author of the study – said that judges saw digital assets as a sophisticated factor in the crimes, thus giving harsher sentences:
“One reason for this is that cryptocurrency is the only form of payment on dark web marketplaces, and sentencing judges are keen to send a message to deter potential offenders.”
She further explained that digital assets are attractive to criminals because they have the ability to facilitate “seamless global transfers without the friction of the traditional banking system and in a way that can be difficult to identify.”
Nevertheless, Adam believes that the magistrates must adapt to the new technology and give relevant sentences based on the crimes and not the payment methods used:
“There is a risk that prosecutors characterize cryptocurrency as a marker of sophisticated crime, which is not always the case. Law enforcement must effectively determine the level of sophistication of the crime and present a fair case.”
Crypto becomes more popular in Australia
A recent Independent Reserve study determined that more than 25% of Aussies (as of the end of 2022) were HODLers. The asset class is much more exciting for the younger generations, with 40% of respondents aged 25-34 having some crypto exposure. In comparison, less than 10% of those over 65 have jumped on the bandwagon.
Crypto awareness was also at a high level in the Land Down Under. Bitcoin remained the most recognizable digital currency, with 90.8% of participants aware of its existence. Around 43% had some knowledge of Ethereum, while the next most familiar assets were Dogecoin (DOGE), Cardano (ADA), Ripple (XRP), Solana (SOL) and Tether (USDT).
