According to Reports, Money Laundering in Crypto Has Become a Massive Problem

A recent analysis found that the amount of dirty money entering the cryptocurrency sector is frightening. Over the last six months, more Suspicious Activity Reports have been filed, according to 28% of cryptocurrency companies.

According to Reports, Money Laundering in Crypto Has Become a Massive Problem

Suspicious Activity Reports (SARs), which are filed by financial professionals, including attorneys, accountants, and real estate agents, are used to inform the police of possible instances of money laundering and terrorism financing. They offer the UK’s law enforcement a new angle on financial wrongdoing in the private sector. They differ from a fraud or crime complaint, though.

What Does the Data Show?

Recent statistics demonstrate the constant battle compliance specialists wage against the expanding epidemic of cryptocurrency-related money laundering. Additionally, a recent poll by BeInCrypto revealed that two-thirds of cryptocurrency companies are concerned about anti-money laundering (AML) infractions.

That isn’t the only piece of data, though. A First AML poll found that 53% of respondents thought that present procedures only partially addressed the concerns of cryptocurrency-based money laundering. In addition, 41% of respondents said they had found instances of cryptocurrency-related money laundering. Furthermore, 51% have been fined or punished for breaking anti-money laundering laws.

Are Cryptocurrencies a Method for Money Laundering?

For a number of reasons, criminals view cryptocurrencies as a lucrative substitute for conventional money laundering. First of all, unlike bank payments in fiat currency, cryptocurrencies like Bitcoin are anonymous and more difficult to trace.

Cryptocurrency may also be accessed anywhere in the world and is quick and simple for large-scale transactions. Additionally, a lot of Virtual Asset Service Providers (VASPs) lack the infrastructure or resources necessary to adequately monitor unlawful behavior.

Chainalysis’s Report

According to Chainalysis’s most recent Crypto Crime Report, 2022 set a record for cryptocurrency money laundering, with $23.8 billion USD in funds being cleaned using cryptocurrencies. That represents a 68% increase from the previous year. The same analysis did highlight the fact that less than 1% of all cryptocurrency is connected to illegal behavior.