Financial Crime and Gambling in a Virtual World
Show Less

Financial Crime and Gambling in a Virtual World

A New Frontier in Cybercrime

Clare Chambers-Jones and Henry Hillman

In this unique book, the authors examine the relationship between real world legislation and new advancements in technology, showing how this can lead to loopholes in legislative protection. They draw on empirical research to highlight the jurisprudential issues relating to economic internet crime and digital currencies.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 6: Digital currencies and financial crime

Clare Chambers-Jones and Henry Hillman


In the preceding six chapters this research has examined the nature of gambling within MMORPGs, social networking games and virtual world games, and assessed whether there are loopholes in the regulation relating to gameplay but also whether this poses a risk of financial crime. This chapter will consider the actual currencies being used within these games/worlds and whether the currency itself poses an additional risk which regulators, players and society in general should be aware of. The chapter will undertake a review of digital and virtual currencies, tracking their origins and evolution, and also looking at what these currencies can do, and how they are used not only within games/world but also in the real physical world. Areas for regulatory concern will then be considered, as well as the links to gambling in MMORPGs, social networks and virtual worlds. The second part of the chapter will look specifically at Bitcoin, the most notable digital currency currently in circulation, and then go on to consider criminal cases where digital and virtual currencies have been used. In the simplest terms, a digital currency may be described as a currency only available in electronic form: all transactions involve transfers from one account to another and no physical currency is produced. While this distinction between digital and physical currency appears relatively clear-cut, physical currencies in fact are not entirely physical – there is not enough physical currency to match the amount held electronically.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.