Fighting money laundering in crypto, explained

As the Dutch proverb goes: “The soup is not eaten as hot as it is served.” Meaning: The threat is often not carried through as thoroughly as initially presented. Bitcoin Magazine recently reported that the investigative arm of the Dutch tax authority — the FIOD — wants to lower the bar for prosecution of unlicensed bitcoin traders. As part of that effort, the FIOD aims to have mixing services recognized as money-laundering indicators. Users of mixing services would be assumed guilty, Dutch financial newspaper Financieele Dagblad (FD) wrote, unless they could prove otherwise. The FIOD has....

In a post published on SC Magazine, COO of the anti-crime software firm Wynyard Group, Paul Stokes has explained how the cryptocurrency businesses based in UK can detect and curb money laundering activities. Bitcoin and other cryptocurrencies such as Litecoin have been assumed/ rumored to be used in illegal money transmitting operations as their underlying blockchain technology provides an additional layer of secrecy. Paul explained that even as criminals use newer methods to launder money, there is technology available that can help businesses comply with AML regulations in an efficient....

Authorities in Hong Kong have arrested four people suspected of money laundering a total of $155 million through cryptocurrency wallets and bank accounts. The city’s customs agency said this was its first case in which virtual money had been used to launder dirty cash. Money Laundering Syndicate Recycles $155 Million in Crypto and Fiat Transactions The criminal group is believed to have processed illegal funds for a total of 1.2 billion Hong Kong dollars ($155 million), Hong Kong Customs announced Thursday. In an operation code-named “Coin Breaker,” officers detained the....

NFT’s could be a vehicle to legitimize ill-gotten gains for the crypto elite. The nonfungible token space has been a hive of activity over the past month or so but there could be more going on than meets the eye as concerns emerge over the sector’s involvement in money laundering and tax evasion.Crypto investor and uber-bearish crypto commentator Mr. Whale has drawn attention to the darker side of the burgeoning NFT space. In a blog post earlier this week, the Bitcoin early adopter attributed the popularity and notoriety of NFTs to their ability to facilitate money laundering and tax....

Digital currencies were deemed a "low" risk for money laundering and terrorism financing in a report published last month by the UK government. In a National Risk Assessment released 15th October by HM Treasury, the government said that digital currencies present the lowest risk rating among money laundering vehicles, a list that also includes cash, banks and accountancy services. "The money laundering risk associated with digital currencies is low, though if the use of digital currencies was to become more prevalent in the UK this risk could rise," the report states. It goes on to....