Cryptocurrencies came to life as a counterweight to the global financial restrictions that are powered by banks and regulators through the use of fiat. Therefore, it is fitting that Bitcoin (BTC) broke into the limelight in 2009 and raised a lot of controversies right form the start.
By design, all blockchain transactions are recorded on an immutable ledger. Therefore, even though it would take immense work, skilled auditors like Ernst & Young are able to find irregularities — as opposed to fiat, which it is claimed that 99.9% of money laundering is not prosecuted by regulators.
Early on, criminals quickly realized the benefit of anonymous and decentralized trading, and thus started using cryptocurrencies to fund their illicit activities and to launder money. However, EY’s work shows that funds can be found on the public ledger. So, is money laundering by large criminal enterprises through cryptocurrency a major factor or will fiat remain preferred?
The recent upsurge in cryptocurrency payments and related activities highlights the key fears surrounding cryptocurrencies being involved in money laundering. Despite strict regulations and increased vigilance by authorities, money laundering makes up a very small subsection of the overall cryptocurrency ecosystem. Read More...