Cryptocurrency, Crime, And Children: Unveiling The Dark Side of Financial Technology in Child Sexual Exploitation

Abstract

The paper delves into the pivotal role of financial technology, particularly cryptocurrencies, in perpetuating child sexual exploitation.It examines methods such as converting cryptocurrency to fiat, using mixers, and exploiting decentralized finance for money laundering, all of which facilitate anonymity and fund child exploitation networks.Additionally, it assesses regulatory effectiveness, considering instruments such as the UN Convention on the Rights of the Child and Indonesia's Law No. 35/2014, an amendment to Law No. 23/2002 on Child Protection, and proposes reforms to bolster child protection measures.Through stakeholder interviews, it uncovers challenges faced by law enforcement, regulators, and child protection agencies, guiding collaborative recommendations to disrupt exploitation networks and safeguard children from harm.Addressing ethical dilemmas, the paper advocates for a holistic approach that prioritizes child welfare and human rights.Moreover, it highlights concerning data from 2019, where the IWF identified 288 new dark web sites selling Child Sexual Exploitation Material (CSEM), reflecting a 238% increase from 2018.Notably, 197 of these sites exclusively accepted payment in virtual currencies, exacerbating the challenge.Emphasizing the need for action, the paper underscores the Regional Plan of Action for the Protection of Children from All Forms of Online Exploitation and Abuse in ASEAN (RPA), stressing the urgency to address anonymous users and transactions.In conclusion, the paper underscores the necessity for collective action to combat the misuse of financial technology in child exploitation.It advocates for regulatory reforms, increased collaboration, and ethical considerations to ensure a safer future for vulnerable children worldwide.