Aussie Court Study Reveals That Use of Cryptocurrencies has an Influence on Sentencing

Australian offenders who use cryptocurrency for unlawful behavior are more likely to get a stiffer penalty. According to a new study, Australian courts are more likely to give criminals who utilized cryptocurrency as part of their crime a stricter penalty.

“The use of cryptocurrency in criminal activities was seen as indicating an increased ‘degree of planning’ and sophistication, resulting in the court considering general deterrence above other sentencing goals:” According to a new study from Monash University’s Law Review, crime and cryptocurrency have become increasingly prevalent. “Compared to the typical population that may be unfamiliar with these payments, obtaining and using cryptocurrency for payments entails more technical knowledge.

The research investigated 103 Australian cases that were brought before courts between 2009 and 2020, with a particular emphasis on 59 criminal trials and their sentencing processes.

Study authors Aaron Lane and Lisanne Adam found that Aussie courts broadly perceive crypto use as being indicative of “technical sophistication” and “intentional obfuscation.”

However, the pair argued that Aussie courts may be “too eager to adopt a relatively simplistic characterization” of crypto use in criminal activity, arguing that not all crypto use can signify the same level of sophistication, “Sophistication exists on a spectrum.”

The courts must be able to distinguish between the various sorts of crypto transactions used by offenders, especially as digital assets’ wider adoption grows. Perpetrators who utilized centralized digital currency exchanges — where Know Your Customer (KYC) standards allow for easy identification — could not be treated similarly to offenders that use intentionally anonymous noncustodial wallets or mixing services to hide transaction data.

Cryptocurrencies and digital assets have a long history in the public eye as being linked to unlawful activity, most likely owing to Bitcoin’s early ties with the notorious darknet black market Silk Road.

Despite this negative connotation, the number of crypto used for illicit purposes has never been lower, according to a recent study from CipherTrace. In 2020, the report estimated that illegal activity accounted for between 0.62% and 0.65% of all cryptocurrency transactions and has since fallen to between 0.10% and 0.15%.

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