Challenges of the Criminal Justice System in Addressing Crimes Related to Cryptocurrencies and Proposed Solutions within Iran's Legal Framework

Farzaneh Kondori, Narges; Arjmandfar, Mohammadmatin; Tuysserkani, Amin

doi:10.22106/jlj.2025.2044304.6086

Challenges of the Criminal Justice System in Addressing Crimes Related to Cryptocurrencies and Proposed Solutions within Iran's Legal Framework

Document Type : Research/Original/Regular Article

Authors

Narges Farzaneh Kondori ¹

Mohammadmatin Arjmandfar ²

Amin Tuysserkani ³

¹ Member of the faculty of the Judiciary Research Institute, Tehran, Iran

² Master's degree in Intellectual Property Law from Allameh Tabatabaei University

³ Ph.D. in criminal law and criminology and computer crime prosecutor's court

10.22106/jlj.2025.2044304.6086

Abstract

The evolution of modern financial technologies and the expansion of cryptocurrency applications have created unprecedented challenges for legal systems, particularly for the criminal justice system. In this context, most legal systems, rather than adopting an absolute prohibitive stance toward cryptocurrencies, have leaned toward a regulatory approach, seeking to organize related activities within a spectrum ranging from maximum permissiveness to strict limitation.The purpose of this paper is to examine the challenges faced by the criminal justice system in dealing with cryptocurrency-related crimes. The central research question explores what substantive, procedural, and executive challenges cryptocurrencies pose to the criminal justice system and what strategies can be proposed to address them within the framework of existing laws. This study is theoretical–applied in nature and employs a descriptive–analytical approach, relying on library sources as well as semi-structured interviews with several judges and prosecutors active in the field of cybercrime.The findings reveal that the most significant challenges confronting the criminal justice system in handling cryptocurrency-related offenses include ambiguity in the legal recognition and financial value of cryptocurrencies, lack of clear preventive and supervisory regulations, procedural difficulties in investigation and adjudication due to the decentralized and anonymous nature of blockchain technology, challenges related to seizure and enforcement of judgments, and technical, cultural, and educational deficiencies in preventing and managing such cases. These challenges underscore the urgent need for comprehensive and coherent regulations concerning cryptocurrency cases, the provision of adequate technical infrastructure for judicial authorities and law enforcement agencies, specialized training for judges and experts, and enhanced public awareness of the potential risks associated with cryptocurrencies.

Keywords

Cryptocurrency

Criminal justice system

Blockchain

Crimes related to cryptocurrencies

Challenges and solutions

Subjects