Let’s face it – one cannot unsee the possibility of money laundering when Bitcoin is in the focus. The entire decentralized aspect of the leading cryptocurrency makes it ideal tool for money laundering.
People have already talked a lot about this and how black money can buy bitcoins in other countries and be therefore moved without being tracked by the regulatory measures. A new joint report coming from the Center on Sanctions & Illicit Finance and Elliptic has confirmed that Bitcoin laundering for illicit drug activity is a centralized process.
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The authors of the report, Yaya Fanusi and Tom Robinson have indicated that Bitcoin can be laundered through mixers. They said:
“Mixers have consistently processed about a quarter of incoming illicit Bitcoins per year. The proportion laundered through exchanges and gambling combined has been roughly constant (66 to 72 percent). Of note, Bitcoin exchanges processed 45 percent of laundered Bitcoins, but, as they received much higher volumes, a much lower proportion of their activity is illicit.”
The report also said that the bulk of the mixer and gambling laundering schemes occur through just three sites. The report indicates that 97% of the volume in their categories and 50% of the volume overall is processed by three sites.
Metropolitan Bank has recently ceased some wire transfers for cryptocurrencies due to the increasing risk of money laundering. There is potential for many other illicit activities that could be conducted through Bitcoin.
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