How Is Cryptocurrency Fuelling Financial Crime?

Take a go through the cryptocurrency landscape from today’s perspective, and it’s almost impossible to believe Bitcoin has only existed for 11 years. Within only a single decade, Bitcoin (and many of its more notable counterparts) have completely transformed the facial skin of safe, affordable, and anonymous peer-to-peer transactions without intermediaries.

Such may be the pace at which the uptake of crypto keeps growing that some still find it only a matter of time until it replaces conventional currency as we know it.

Whether this is the case remains to be seen. Nevertheless, the potential advantages of crypto are indisputable. The largest difference between conventional currency and crypto maybe how the latter is decentralized. This means it generally does not fall within the control or remit of any central banks and governments worldwide.

It’s therefore 100% immune to the kind of control and interference all conventional kinds of currency are susceptible to.

Crypto coins can be used to purchase almost anything today and the transactions performed are considered uniquely secure. Using trade cryptocurrencies systems has also never been easier, getting millions who’d formerly haven’t felt the potential advantages of online trading.

In which case, how come it that Bitcoin – which will be completely decentralized, transparent, and public – is frequently associated with having an increased risk of financial crime?

Pointing the Finger in the Wrong Direction

Mere months ago, some leaked documents delivered to light evidence that five of the greatest banks in the world have been involved in conducting a wide selection of illegal transactions. The banks under consideration were Deutsche Bank, HSBC, JP Morgan, Bank of New York Mellon, and Typical Chartered Bank – which had performed a function in money laundering, Ponzi schemes, and supporting mobsters.

Not even close to an unusual occurrence, this is the kind of thing that is constantly happening with many (if not most) of the world’s biggest banks on a worldwide basis.

But here’s finished – banks that fall underneath the remit of national and international authorities have something of a get-out clause, which more or less puts a conclusion for their accountability in an instant.

Referred to as the “suspicious activity report,” the only thing a bank needs to complete formally reports suspicious transactions if they arise, at which place the problem comes to an end. Incredibly, a bank’s personnel and executives become very nearly completely resistant to prosecution or more legitimate activity by revealing dubious transactions to FinCEN in the correct manner.

As a result, critics of the world’s major banks continue steadily to declare that illicit transactions will continue being the everyday norm with the greatest players, who practically have a ‘get out of jail free card’to absolve them of responsibility.

Cryptocurrency Corruption?

Meanwhile, you’ve people blockchain which will be neither regulated nor underneath the direct control of any authorities worldwide. Initially, the reputation of crypto was sketchy to express minimal due to its associations with the dark web and its popularity among drug dealers, terrorists, and organized crime networks.

An unethical past that’s been hard to shake off but is by no means indicative of where crypto stands at this time or is headed in the future.

Contrary to popular belief, Bitcoin (and comparable cryptocurrency) isn’t anonymous. Nor could it be impossible to trace transactions back again to the origins, as discovered the hard way by Silk Road founder Ross Ulbricht who had been successfully located and arrested.

More than 40 million Bitcoin wallets are being utilized worldwide, and the number keeps growing exponentially by the day. Tracking and tracing transactions on public blockchains are easier than it has ever been, providing authorities with the information they need to identify and prosecute perpetrators.


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