The Rise of Cryptocurrencies in Money Laundering
Criminals are increasingly turning to cryptocurrencies to launder money and conceal the origins of illegally obtained funds. This is revealed in a report by Chainalysis, as cited by CNBC.
The report, which examines trends and new methods of money laundering, highlights the use of cryptocurrencies for offline crimes such as trafficking. Various methods, including mixers, bridges between different blockchains, and movement between wallets, are used to achieve this.
The Growing Use of Cryptocurrencies in Money Laundering
Cryptocurrencies have become a popular tool for money laundering, enabling criminals to easily move funds across borders without much cost. The mass adoption of cryptocurrencies has made them attractive for various criminal activities such as drug trafficking and fraud. According to a report by an analytical firm, by 2024, money laundering in the crypto sector will be associated with all types of crimes, not just those directly related to the cryptocurrency ecosystem.
toda este un proces complicat care implica diferite metode pentru a ascunde urmele banilor. Mixer-ele sunt servicii care amesteca criptomonede din diverse surse pentru a dificulta urmarirea monedelor individuale si proprietatii acestora. Podurile, pe de alta parte, sunt folosite de unii pentru a ascunde originea fondurilor, mutandu-le intre retelele blockchain.
### Money Laundering Techniques in Cryptocurrency
Money laundering is done through various methods, including so-called mixers, bridges between different blockchains, and movement between wallets to mask the flow of funds.
Mixers are services that combine cryptocurrencies from different sources to make it difficult to trace individual coins and their ownership. Bridges, on the other hand, are used by some to hide the origin of funds by moving them between separate blockchain networks.
Uncovering Illegal Activities in Crypto
Since 2019, nearly $100 billion has been transferred from portfolios with illegal activities to those with legal activities via conversion into fiat currency, according to Chainalysis data. The largest identified sum was $30 billion in 2022.
However, illegal activities can still be traced, as noted by Chainalysis.
Money laundering through cryptocurrency can be traced and analyzed with great accuracy and speed due to improved technologies.
The Impact of Blockchain on Financial Systems
Blockchain technology has revolutionized the way financial systems operate, offering increased security, transparency, and efficiency compared to traditional methods. However, the use of cryptocurrency for money laundering is expected to rise even further, as warned in a recent report.
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