COMBATING MONEY LAUNDERING THROUGH DECENTRALIZED CRYPTOCURRENCY EXCHANGES (DEX): INTERNATIONAL APPROACHES AND DEVELOPMENT OF NATIONAL LEGAL MECHANISMS
Keywords:
decentralized exchange (DEX), money laundering, FATF, crypto-assets, AML/CTF, international law, blockchain, DeFi, smart contractAbstract
This article analyzes the international legal aspects of combating money laundering through decentralized crypto-exchanges (DEXs). The subject of the study is the structural features of DEX platforms – non-custodical architecture, automated market making (AMM) mechanism, lack of user identification and transnationality – and their role in illicit financial flows. Based on comparative legal and systemic analysis methods, the Financial Action Task Force (FATF) “Travel Rule,” the regulation of the European Union Regulation on the Regulation of Crypto-Asset Markets, and the experience of leading countries are studied in a comparative manner. The monitoring capabilities of blockchain analytics tools and machine learning algorithms are assessed. The results of the study show that traditional anti-money laundering (AML) mechanisms are not sufficiently effective in the DEX environment and it is necessary to develop new legal mechanisms. Recommendations were put forward for Uzbekistan to harmonize national legislation with international standards, strengthen oversight of DEX gateways, develop international cooperation, and introduce a regulatory sandbox mechanism.
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