Virtual assets, real risks: building a co-ordinated response across the OSCE region
Virtual assets are transforming global finance by expanding access, accelerating transactions, and opening new economic opportunities, including speed and anonymity. But these cut both ways; the same features can also make digital finance a vehicle for money laundering, corruption, and terrorist financing that no single country can tackle alone.
The scale of this global challenge is significant. The United Nations Office on Drugs and Crime estimates that between 800 billion and 2 trillion dollars are laundered globally each year. In the digital space, illicit cryptocurrency activity reached record levels in 2025 with reports from Chainanalysis indicating that illicit addresses received at least 154 billion dollars. Despite these rising threats, the Financial Action Task Force (FATF) reports that as of 2025, only 29 percent of jurisdictions are largely compliant with international standards on virtual assets.
That is where the OSCE comes in. The Office of the Co-ordinator of OSCE Economic and Environmental Activities (OCEEA) works closely with the OSCE participating States to strengthen regulatory frameworks, build technical capacity across law enforcement and financial intelligence units, and drive the international co-operation required for effective oversight.
Our approach is simple: keep digital finance open for business, and closed to exploitation. Working across Eastern Europe, the South Caucasus, Central Asia and Mongolia, the Office combines policy reform with blockchain analytics to help participating States foster innovation without opening the door to illicit exploitation.
Advancing institutional reforms and fostering regional capacity
The impact of these interventions is evident in the legislative and institutional reforms currently underway. In Moldova, we supported the development and presentation of the country’s first National Risk Assessment on virtual assets. This enabled Moldovan authorities to identify national vulnerabilities and align their strategy with international best practices.
Building on these efforts, our technical assistance helped Georgia achieve alignment with FATF Recommendation 15, which sets international standards for regulating and supervising virtual asset service providers (VASP) to address money-laundering and terrorist financing risks. Now rated as largely compliant, the country has established a specialized anti-money-laundering (AML) department within its National Bank. Similarly, in Ukraine, the OSCE has been a key partner in developing a draft law on AML regulation and the law on virtual assets to bring national legislation into line with international transparency standards.
Our work doesn’t stop there. The impact extends across the OSCE region to foster a co-ordinated response to digital financial crime. In Armenia, OSCE experts conducted advanced training for investigators and supported the development of regulatory frameworks for VASPs. In Azerbaijan, specialized workshops enhanced national authorities’ capacities to counter money laundering through enhanced data collection and inter-agency co-operation.
Across Central Asia, the project launched tailored initiatives, such as introductory workshops for Turkmen authorities, crypto-investigation training for practitioners in Kazakhstan, and specialized sessions for supervisory institutions, law enforcement, ministries, and other relevant agencies in Kyrgyzstan to prevent the criminal use of virtual assets.
In Tajikistan, a two-day workshop helped national authorities gain practical skills on VASP licensing, supervisory processes, and the legislative requirements for effective virtual asset investigations. Meanwhile in Uzbekistan, workshops have focused on the tools officials need to solve complex cases. Mongolia has also benefited from awareness-raising workshops that have laid the groundwork for future regulatory development and enhanced national oversight.
Developing knowledge products and global partnerships
To complement national efforts and bridge the gap between policy and practice, we have gone beyond legislative support to create hands-on resources that empower those on the front lines.
For example, the launch of Decoding Crypto Crime, a practical guide developed with Interpol and the Global Coalition to Fight Financial Crime, strips away the complexity of digital finance and gives law enforcement the clear, step-by-step tools they need to track illicit transactions and secure evidence.
To efficiently tackle illicit financial flows involving virtual assets, partnerships with the private sector has also been at the forefront. We are facilitating access to software licenses for blockchain analytics tools and data platforms to beneficiary agencies, which enable investigators to track, analyze, and visualize transactions across blockchain networks.
We are also looking at the human side of this digital shift. Our report, Decentralized but not Equal, dives into the persistent gender gap in blockchain literacy, showing that technology is only as inclusive as the people who have access to it. By shedding light on these barriers, we are encouraging a more diverse and active participation of women in the sector, ensuring that the future of finance is built on equal ground for everyone.
The ultimate goal of our work is to ensure that the digital finance ecosystem remains transparent, secure, and resilient. Through continued capacity-building and legislative support, we remain committed to ensuring that virtual assets can operate within a secure and regulated framework. This comprehensive approach ensures that OSCE participating States are better equipped to protect the integrity of their financial systems against evolving digital threats.