Balkan crime groups cash in on crypto to move funds, with almost no seizures on records

Criminal networks operating in the Western Balkans are reportedly taking advantage of lax legislation and enforcement by regulators to use cryptocurrencies to launder illicit funds. According to a new report by the Global Initiative Against Transnational Organized Crime, despite the growing adoption of digital assets by criminal enterprises in the region, authorities have recorded only a handful of successful asset seizures. Crypto is the preferred financial highway for Balkan criminal networks The report recalled that as of 2023, about 240,000 individuals owned crypto in the region, with most of them based primarily in Serbia. The transaction volume estimate at the time was between $25 billion and $30 billion. However, the figure is a mix of legitimate and criminal elements who have leveraged digital assets technology to facilitate their operations, helping them obfuscate their identities and bypass the scrutiny of traditional financial institutions. While governments around the world are putting legislation in place and upgrading their ability to track and seize virtual assets of bad actors, the countries in the Western Balkans continue to lag behind, with no major sign that the trend will be changing soon. A significant issue highlighted in the report is the limited or lack of regulatory framework and technical capacity among law enforcement agencies in the region. Seizures are rare despite widespread use To date, there have been only three documented cases of virtual asset seizures in the region. One notable case involved an Albanian organized crime group engaged in drug trafficking and theft. The Albanian authorities collaborated with counterparts from Belgium, Spain , the Netherlands, and Europol between November 2024 and January 2025 to bring the group to book. The operation seized assets such as wallets containing $10 million in crypto assets. Albania, Bosnia and Herzegovina, and Serbia are the only countries in the region with documented seizures. However, only Albania and Serbia have moderate to strong regulatory frameworks surrounding virtual assets. The other countries are still lagging, with Montenegro and Bosnia and Herzegovina being the weakest in terms of their regulatory frameworks. Even when these countries have laws in place, implementation is often hindered by a lack of trained personnel and inadequate technological tools needed to trace and freeze assets on the blockchain. The road to curbing the activities of bad actors in the region Security analysts recommend that these Western Balkan countries set up clear legal structures, including how seized crypto should be stored and managed. Montenegro and Serbia are taking early steps. Serbia is planning a system where confiscated assets are transferred to a secure government wallet. In September 2024, the Balkan Asset Management Interagency Network (BAMIN) trained 24 regional practitioners in crypto asset seizure strategies. Croatia is going the more practical route by letting police freeze and store crypto tied to crimes . Recommendations also covered standard procedures for transferring and documenting seized assets to ensure transparency. Events like Serbia’s upcoming Digital Forensics Conference could boost collaboration and knowledge-sharing. The report also highlighted that the International Organization of Securities Commissions has provided useful policy suggestions for crypto and digital asset markets, which can be adopted as a guide by policymakers and practitioners in the Western Balkans. Your crypto news deserves attention – KEY Difference Wire puts you on 250+ top sites

Source: Cryptopolitan