The Effectiveness of Digital Asset Freezing as a Legal Mechanism for Combating Terrorism Financing
DOI:
https://doi.org/10.64184/ajlps.V3.I2.Y2026.663-687.345Keywords:
Cryptocurrencies – Freezing of Digital Assets – Terrorist Financing – International LawAbstract
This research examines the effectiveness of freezing digital assets as a legal mechanism for combating the financing of terrorism in light of the technological transformations brought about by cryptocurrencies. The study explores the conceptual framework of cryptocurrencies and their technical characteristics, as well as the ways in which they may be exploited for terrorist financing activities. It further reviews the international legal framework governing asset-freezing measures and analyzes the legal and technical challenges that hinder the practical implementation of such mechanisms in the digital environment. The study concludes that the absence of a unified international legal framework, the weakness of international cooperation, and the technical complexities associated with tracing digital assets constitute the most significant obstacles to the effective enforcement of asset-freezing measures. Accordingly, the research emphasizes the need to develop flexible legislative and technological tools, alongside strengthening international cooperation mechanisms, in order to effectively address this transnational phenomenon.
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