What is money laundering in cryptocurrency?

The term money laundering has been used for both business and financial crimes. In general, money laundering is the misuse of the financial system involving cryptocurrencies, securities, banking, credit cards, and traditional currency, including bypassing international sanctions and terrorism financing.

How much money is laundering on the blockchain?

But while you'd expect that the money laundering resulting from such a broad spectrum of illegal activity to have taken place across a large number of services, Chainalysis reports that just a small group of 270 blockchain addresses have laundered around 55% of cryptocurrency associated with criminal activity.

Are crypto services vulnerable to cryptocurrency and bitcoin money laundering?

However, many crypto services fall behind to fulfill compliance requirements and are vulnerable to cryptocurrency and bitcoin money laundering. Layering is the next phase where criminals use different types of crypto services to create a complex transaction trail to remove the direct association with the funds’ origin.

Is cryptocurrency still the preferred medium for money launderers?

While there has been much focus on using cryptocurrency to launder money, it is essential to remember and not to lose focus that “cash” is still the preferred medium for money launderers. There needs to be a change in thinking, bringing “fraud” into the conversation regarding regulatory compliance and specifically money laundering.