We all know that the decentralized appeal of Bitcoin has made it the ideal way to launder money and label them for shady purposes. However, a recent report from the joint Bitcoin analysis of FDD and Ellicit says that less than 1% of Bitcoin’s value involves money laundering.
The report was written to help analyze the flow of funds and the potential danger of money laundering. It indicated that money laundering isn’t nearly the problem that some critics of cryptocurrency believe.
The report states that:
“The amount of observed Bitcoin laundering [is] small and darknet marketplaces such as Silk Road and, later, AlphaBay are [generally] the source of almost all of the illicit Bitcoins laundered through conversion services.”
It also indicates that the vast majority of illicit transactions using Bitcoin were processed in Europe and not Asia or the US – receiving more than five times as many illicit transactions than in North America.
What’s certain at this point is that the best way to combat money laundering is through more reports – and obciously through an anti-money laundering (AML) framework or measure. This report is currently the only way to manage the illicit transactions and see things in full detail.
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