Fiat vs Crypto in money laundering

[TanakabZX]

Not even surprise about that. Fiats are way easier to use in money laundering although cryptocurrency has been used by those criminals already lately but they probably convert it to fiat anyway. The statement in an article link given by OP makes sense;
 
 

Although not all use of cash is criminal, all criminals use cash at some stage in the money laundering process …
 While the world is looking with concern at the possible misuse of virtual currencies by criminals, this report may seem somewhat unusual in that it is not highlighting a new phenomenon or an emerging risk…money laundering schemes detected by law enforcement are still largely characterized by traditional techniques, in particular, the use of cash.”

 Criminals are also more familiar about fiats than crypto thus having some doubt to use crypto in fraudaleny acts.

Yea, probably because many criminals don't have the knowledge of how crypto works and what crypto flaws are, people really need to stop using something they have to knowledge about.

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[FLHippy]

Do you know which currency is the most used one for shady activities? American dollar. Do you know that almost every american dollar, as paper money, has on its surface trace amounts of cocaine? So what we are talking about? This idea about cryptocurrencies is totally wrong!

[AbNewton]

Yea, probably because many criminals don't have the knowledge of how crypto works and what crypto flaws are, people really need to stop using something they have to knowledge about.

Don't underestimate criminals about their knowledge about learning a new thing for their illegal activity. They don't use crypto to money laundering as much since there are still a lot of centralized exchange so they don't want to risk.

[tvplus006]

I just want to share a short prove showing that Fiat is been used more in money laundering schemes than crypto and if people attacks you with crypto's being used to launder money. ...

This is not surprising. Fiat has a much larger volume than the crypto market as a whole. In addition, Fiat has long been used for money laundering and this familiar scheme will not soon be replaced by cryptocurrency. Also, it remains difficult for many to use cryptocurrency for these purposes, if you can do it very simply with Fiat.

[timmmers]

Probably, this is the last claim of people that do not understand cryptocurrencies. But, as you can see it is completely wrong. It is because people are afraid of new technologies, they do not understand it, they do not want to learn something new because they are lazy. But, they will realize how bad is this attitude after they loose another opportunity becoming rich. 

[shoreno]

Probably, this is the last claim of people that do not understand cryptocurrencies. But, as you can see it is completely wrong. It is because people are afraid of new technologies, they do not understand it, they do not want to learn something new because they are lazy. But, they will realize how bad is this attitude after they loose another opportunity becoming rich. 

last claim hmm so you mean there are other claims of people on crypto just to avoid it ? how dare them but thats fine , those kind of people can become toxic on our community if ever they experience bad on using crypto so we dont need them . why would they be afraid of new technologies when this cant harm them , they should be afraid of those new gadgets or microchips that said to be inserted our body .  i dont think being lazy can be use as a good excuse on trying crypto because its not that hard to use

[azmirihaque]

This is right that maximum money laundering case are related to fiat money. According to the international law, money laundering occurs mainly in three ways. Placement, Layering and Integration. All these ways occur through banking channel and fiat money is directly related to banking transaction. That's why money laundering with fiat money is directly related. As crypto currency is still not properly engaged in banking channel, very few money laundering occurs with crypo-currency. Yet, There has a less opportunity of money laundering in crypto than fiat money.

[chanc3r]

I just want to share a short prove showing that Fiat is been used more in money laundering schemes than crypto and if people attacks you with crypto's being used to launder money. ...

This is not surprising. Fiat has a much larger volume than the crypto market as a whole. In addition, Fiat has long been used for money laundering and this familiar scheme will not soon be replaced by cryptocurrency. Also, it remains difficult for many to use cryptocurrency for these purposes, if you can do it very simply with Fiat.

Still, there's reason why these fiat money launderer didnt switch to cryptocurrency because it's difficult for them to do so. Most of crypto based company always ask for identity and that's already an end for those who want to launder money. I'm sure crypto is not ideal for money laundering and that's why we should keep the stigma regarding crypto being used for criminal away because that's not true.

[ethereumhunter]

Don't underestimate criminals about their knowledge about learning a new thing for their illegal activity. They don't use crypto to money laundering as much since there are still a lot of centralized exchange so they don't want to risk.

Yes, criminals do not want developments in crypto, they just want to get money and change it in real form, their knowledge is clearly very much, because to deceive many people or commit other crimes is not needed by calm and innocent people.

Sooner or later, they will use crypto, especially if they think that using the crypto can help them hide their identity from other people. I think some criminals already use crypto to ask the ransom because they can sell the crypto in the dark market without anyone knows. But the criminals still use fiat in money laundering because I think they have their people who will help them send the money to the banks.

[Captain Corporate]

 Well fiat could be higher but you have to take a look at amount to money launder ratio. For example there are so much dollars in the world and there are so few bitcoins in the world, we don't know money laundering numbers because some people do manage to do it without getting caught, plus bitcoin ones are smarter because they are people who know how to use bitcoin and usually that requires a bit if brain. When combine all of that together I would say that % of bitcoin transactions being money laundering versus % of fiat that is money laundering would be different.

 That doesn't mean bitcoin is a money laundering currency, there are million other ways you can use bitcoin, but just like fiat, money laundering could be one of the ways to use bitcoin as well and the anonymous nature of bitcoin makes it a bit easier to do money laundering.

[el kaka22]

Well, the idea that "fiat is used more" can be in anything. Obviously it is used more in money laundering, it is also used more in buying a burger, it is also used more to pay salaries of workers. Bitcoin is not used as much as fiat in almost everything in the world, that is why we say we need adoption.. okay maybe not from money launderers .

So, why were there some accusations towards bitcoin that it could be used for money laundering? Well simply if you do not do KYC, I could sell my drugs for bitcoin, ask people to pay me in bitcoin, they will, and then I will sell that bitcoin on some exchange and cash it out to fiat and if anyone asks I could say "I bought it long time ago and now wanted to profit" and nobody could prove otherwise. That is why there was a "risk" of it, not saying it was higher than fiat.

[Ucy]

I just want to share a short prove showing that Fiat is been used more in money laundering schemes than crypto and if people attacks you with crypto's being used to launder money. ...

This is not surprising. Fiat has a much larger volume than the crypto market as a whole. In addition, Fiat has long been used for money laundering and this familiar scheme will not soon be replaced by cryptocurrency. Also, it remains difficult for many to use cryptocurrency for these purposes, if you can do it very simply with Fiat.

The main problem isn't really whether they are used for crimes or not... what matters more in my opinion is how to prevent or make them hard for criminals to use without violating the fundamental rights of innocent currency users. This is the problem current modern fiat currencies have seriously failed in... People's other rights are violated to fight criminals.  You can fight criminals properly on well decentralized systems/currencies without violating the rights of the innocents

[uneng]

 Well fiat could be higher but you have to take a look at amount to money launder ratio. For example there are so much dollars in the world and there are so few bitcoins in the world, we don't know money laundering numbers because some people do manage to do it without getting caught, plus bitcoin ones are smarter because they are people who know how to use bitcoin and usually that requires a bit if brain. When combine all of that together I would say that % of bitcoin transactions being money laundering versus % of fiat that is money laundering would be different.

 That doesn't mean bitcoin is a money laundering currency, there are million other ways you can use bitcoin, but just like fiat, money laundering could be one of the ways to use bitcoin as well and the anonymous nature of bitcoin makes it a bit easier to do money laundering.

Yes, the percentage of bitcoins in money laundering are higher than the percentage of dollars in money laundering if compared to their respectives total supplies. But it doesn't mean criminal bitcoin activities can't be tracked.
Several schemes dealing with bitcoin were already uncovered by law forces and their authors arrested in different countries. That makes bitcoin money laundering be like any other currency money laundering. There is no reasons for the media or authorities segregate bitcoin for money laundering usage. If they want to do this, they have to blame all the kinds of currencies first then!

[JCviggen]

Many people say that fiat is basically popular compare with crypto.it seems like the most priority as payment to buy goods to our traditional market and I think it can be connected, and this process are controlled by a bank, however from past history, many have even sacrificed their lives because of it and definitely fiat money is also risky compare with crypto currency I mean it is a digital process for payment with a secret key to opened ,therefore the comparison to each process is much more sequences but it is easy to click ' aside from this your investment remaining are still have a chance to grow even when you are dreaming while sleeping.

no need to compare. you need to understand the perspectives of each tool. Now it’s convenient for us to use fiat money, but in the future cryptocurrency will be more convenient and that's why we need to invest and accumulate cryptocurrency

[crustycrab666]

Probably, this is the last claim of people that do not understand cryptocurrencies. But, as you can see it is completely wrong. It is because people are afraid of new technologies, they do not understand it, they do not want to learn something new because they are lazy. But, they will realize how bad is this attitude after they loose another opportunity becoming rich. 

From this, we know that reading and analyzing something deeply is the key to success. Do not make opinions without evidence as a basis for addressing something. Use a wider perspective so that we know that everything has good and bad sides. And it all depends on the user, the man behind the gun.
Cryptocurrency is a fairly new innovation, many pros, and cons, it all depends on how we react. If we are only afraid of the bad side, then we will not develop and can not get extraordinary benefits from crypto.

[InwardContour]

FIAT being in existence years before crypto is supposed to be used more in money laundering comparatively, such comparisons should be made from when Bitcoin was invented till present and not otherwise. By the way nice article OP, atleast we can use this to prove a point for those who always associate crypto to scams / money laundering, and claim crypto will never be acceptable mainstream due to this mishap.

[electronicash]

FIAT being in existence years before crypto is supposed to be used more in money laundering comparatively, such comparisons should be made from when Bitcoin was invented till present and not otherwise. By the way nice article OP, atleast we can use this to prove a point for those who always associate crypto to scams / money laundering, and claim crypto will never be acceptable mainstream due to this mishap.

there are more ways to make fiat more untraceable than BTC which is why its easy to use them in laundering. a blood money with just made up receipts of a made up business, it could already come out clean and taxable.  its like money out of thin air. no mining done nor blockchain trail. its harder to do it in crypto because everything is recorded on the ledger. if anything the authorities can freeze your account. ETH wallet can even be frozen which is a lot easier for authorities to stop transactions.

[Westfiled]

Do you know which currency is the most used one for shady activities? American dollar. Do you know that almost every american dollar, as paper money, has on its surface trace amounts of cocaine? So what we are talking about? This idea about cryptocurrencies is totally wrong!

All of the fiat currencies have ever used for the money laundering.
Some people use this to FUD crypto as they were also crypto haters at the same time. We know that fiat was also being used for money laundering too and this is a common thing that already known very well by all of the parties.

[Shallow]

Even without being told, everyone knows that money laundering is mostly done with fiat right from time immemorial and it will continue that way too. Also, crypto is still growing while fiat is already established, meaning that the number of people using crypto is far smaller when compared to those using fiat, that is to say, there is very high chances of using fiat to carryout all manner of fraudulent activities than crypto.
Those who always associate crypto with fraud, do so because they have no better understanding of crypto therefore looking for ways to discredit it.

[Twinkledoe]

Even without being told, everyone knows that money laundering is mostly done with fiat right from time immemorial and it will continue that way too. Also, crypto is still growing while fiat is already established, meaning that the number of people using crypto is far smaller when compared to those using fiat, that is to say, there is very high chances of using fiat to carryout all manner of fraudulent activities than crypto.
Those who always associate crypto with fraud, do so because they have no better understanding of crypto therefore looking for ways to discredit it.

Most people who associate crypto with fraud are those that have no sufficient knowledge about crypto. And because media is one of the major sources of this skewed perception, this will not go away unless they will educate themselves about the nature of crypto. So if someone is only thinking of the bad consequences dealing with crypto, then it is his loss of not discovering the true potential of it as part of his daily life.