Bitcoin is not suitable for money laundering – opinion

Bitcoin is not suitable for money laundering – opinion

Can they ban Bitcoin? Who can do it? Why? RISKS to Crypto holders? Should we worry?


Bitcoin is not suitable for money laundering – opinion

  • Cryptocurrencies are not used for money laundering

  • 90% of money is laundered through banks

  • ChangPeng Zhao believes in a free economy

International consortium of news organizations, developing standards for transparency.

According to the United Nations, between $ 800 billion and $ 2 trillion are laundered every year around the world, which amounts to 2 to 5% of world GDP, but 90% of them go unnoticed.

Bitcoin has nothing to do with it

After the recent release of FinCEN files, it became clear that 90% of money laundering occurs precisely through large international banks and financial companies. There was not a single company on the FinCEN list that was involved in money laundering through cryptocurrency. On the contrary, the files of the department featured banks and companies that were sharply opposed to cryptocurrencies, considering them the most convenient way to launder money..

According to Chainanalysis, no more than 1.1% of suspicious transactions are accounted for by cryptocurrencies in the world..

Bitcoin is not suitable for money laundering - opinion

Source: Chainanalysis

Bitcoin is not suitable for money laundering - opinion

That is, cryptocurrencies are the most transparent payment method, and each completed transaction can be tracked using special analytical services..

Crypto market at gunpoint

The same opinion is shared by the CEO of the cryptocurrency exchange Binance Changpeng Zhao. In a recent interview with Forbes, he stated that the world cannot be divided into black and white: not all banks are guilty of money laundering, and not all cryptocurrency companies are clean on hand. Nevertheless, the strictest control has been established over the cryptocurrency market, so it will not work to transfer a large amount without personal identification..

Any significant amount of money you want to transfer into cryptocurrency is very difficult to transfer anonymously. There are third party monitoring tools and databases that can match many addresses to famous people. The market capitalization of a cryptocurrency is so small that if you move $ 100 million, you can’t do it without going through a centralized exchange, which makes tracking even easier, ChangPeng Zhao said..

Changpeng Zhao himself believes that the future belongs to a free economy, in which the state will not be able to support banks to the detriment of cryptocurrencies..

Bitcoin is not suitable for money laundering - opinion

Banks cannot track transactions

Indeed, states provide some support to banks in an effort to limit the circulation of cryptocurrencies in the world. However, as studies show, banks are simply not able to track and block suspicious transactions..

The latest research by CipherTrace shows that most banks operating in the world do not understand the nature of cryptocurrency transactions, and therefore cannot adequately analyze and block them. If a bank is unable to determine with certainty whether its institution is serving a virtual asset business, or if its customers make payments related to virtual assets, they are unable to meet their BSA obligations.

It was the inability of traditional financial institutions to track cryptocurrency transactions that led to Eastern Europe becoming the leader in the activity of criminal cryptocurrency transactions. The most popular place is still the Hydra Marketplace. In just a day, the total turnover of the domestic site of prohibited funds has already increased by 296 BTC ($ 3.2 million) to 356,000 BTC ($ 3.8 billion).

To help banks and crypto exchanges identify and block suspicious transactions, the FATF has developed guidelines. In a published report titled “Virtual Assets. Money Laundering and Terrorist Financing Alarms “, FATF describes key behavioral algorithms that signal strange activity in the cryptocurrency market.



All information, contained on our website, published on the principles of good faith and objectivity, and for informational purposes only. The reader bears the full responsibility for any actions, committed by him on the basis of information, obtained from our website.

Share Article