Cryptocurrencies and Financial Crime

[348Judah]

Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.

Let us not be too focused on bitcoin or cryptocurrency in general, financial crime has always existed between the financial institutions, governments and some individuals and this has always been the norms, it has been happening and keep repeatedly happening, government cannot control it, why would having financial control be more effective on a decentralized network with thebuse of AML agencies when they aren't done yet with fiat, those using it for illicit activities are less of our concerns as long as we know the best means to stay off their limit from attacking us.

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

Nothing, we just have to leave it as it is, all you could do is to know how you could safeguard your own asset and get secured, if you're not been vulnerable, they won't attack or scam you successfully, make use of a decentralized wallet and don't expose your personal details.

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[Nwada001]

When you say fight, how do you mean? Since the advance of the crypto technology, there have always been reports of many illegal activities operated by individuals who exploit the pseudonymous nature of cryptocurrencies.

what I mean by fight is, instead of blaming crypto currency as the reason behind the increase on some illegal activities and exploits they should focus on facing those who are the brainboss behind those activities.

Although, many measure have been implemented to try reduce these activities such as the kyc, still I don't think that they can be stopped totally. It can only be regulated through awareness, and educating people about the possibility of such activities.

This is only applicable when one is making use of custodial system, if not their is no how that an addres will be attached with identity verification, like you have said it's not easy, because scammers are also getting wiser day after they and they have their ways of avoiding those centralized system in other not to get caught, and even though they make use of centralized system those information which they use to open up those customer accounts are others information which was gotten from dark web and those who have the information might not even have anything to do with the scam.

[drwhobox]

The blame is only for bitcoin but why? There are several money laundering cases with fiat, and I think the number of money laundering with fiat is much bigger than money laundering with bitcoin. Banks and government want us to believe that bitcoin is the main character for money laundering and crime.

[kryptqnick]

Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

There are plenty of existing regulations, and I don't think we need more of those. I believe that a more reasonable, balanced approach should be put in place. Namely, I find it absurd to demand mandatory KYC from everyone on a crypto exchange, regardless of whether their account has dozens, hundreds, or hundreds of thousands of dollars worth of money. It is important to fight big crime, the sort of activities that result in millions or more of laundered money. These activities should be the primary target, and those moving huge amounts of money should be required to provide a lot of documentation. As for regular users, I think the privacy concerns outweigh the risk of illegal financial activities here. Also, I think the regulations should not focus merely on crypto users and platforms, but should also deal with a big issue of banks laundering billions of dollars. I mean, such cases as Danske Bank are crazy, and all efforts should focus on preventing them.

[o48o]

Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

Google FATF travel rule and MICA regulation 2023. There are already plenty measurements in taking place. And not just for cryptos, but fiat money / wealth too.

You on the other hand are spreading misinformation. Washing money trough crypto is harder than you think. It's way more efficient using shell companies and fiat money.

[Mate2237]

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

As far as Bitcoin and other Cryptocurrencies are currencies, nobody can do any to stop that. Whatever happens to the Fiat can also happen to any Cryptocurrency. If a country can not stop money laundering, nobody can stop criminals from using Cryptocurrencies. Who is using Cryptocurrencies for criminal activities is unknown so how do you stop it. Cryptocurrency us not use by few members in a family or compound but the whole world so it will be very difficult to identify those criminals.

If care is not taken, the crime rate in Cryptocurrency will be higher than the Fiat Currency because everyone now is going to the internet and criminals are more in the internet. They use the internet as cover up or umbrella body for criminal activities.

[blockman]

Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.

This is also describing cash/fiat.

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

Nothing. It will be lessened dramatically over time when most people that are into it are using it as an asset or store of value. That will come naturally when the majority of the people are into it but just as the usage of cash is done with several illegal uses. Bitcoin will be attached on it for as long as it can.

[electronicash]

we encourage criminals to use crypto and see for themselves if they can't really be traced. in the past, there are already coins being frozen in the exchanges, and criminals are traced and subpoenaed because they were caught. these are kinds of proof that crypto can help lessen financial crimes instead than make worse. 

its banks who are afraid of crypto because if they use crypto, they will be traced because they are the ones who normally launder money.

[AnonBitCoiner]

Money is always used for illegal works and I think that one cannot stop them to doing so because people are so expert in such activities that they think that government cannot control them. But in my opinion one day these all bad activities will be banned.

Not only bitcoin but fiat which is under the control of government is also used for such activities so we cannot blame bitcoin or fiat but we will blame those individuals who are involved in it. There are advantages as well as disadvantages but we have to keep eyes on both so those individuals who are involved in money laundering and crimes should think that they can also use it as a good asset and earn more as a safe and secure way.

[death69]

We need to take preventative measures against unlawful activity and financial crime involving cryptocurrency because we recognize that this is an undesirable and possibly inevitable byproduct of any new technology.

Transparency in financial dealings is one option that could work. Cryptocurrencies' pseudonymous nature is both a major selling point and a potential security risk. It may be easier to trace illegal activities if they are recorded in an open-source, public ledger of transactions (a more transparent blockchain, so to speak) in which names are kept anonymous but transaction trails are visible.

In addition, it may be essential to implement regulations for bitcoin exchanges. Verifying user identities and reporting questionable transactions should be mandatory on these sites. Possible important function for regulatory technology (RegTech).

However, it is important to remember that, just like with any other currency or technology, criminality will certainly survive in some form despite these efforts. The trick is to limit the damage as much as possible while also making cryptocurrency use as secure and regulated as possible.

[AmoreJaz]

Money is always used for illegal works and I think that one cannot stop them to doing so because people are so expert in such activities that they think that government cannot control them. But in my opinion one day these all bad activities will be banned.

Not only bitcoin but fiat which is under the control of government is also used for such activities so we cannot blame bitcoin or fiat but we will blame those individuals who are involved in it. There are advantages as well as disadvantages but we have to keep eyes on both so those individuals who are involved in money laundering and crimes should think that they can also use it as a good asset and earn more as a safe and secure way.

i don't think such activities will be halted even if the government or authorities ban such use of money over fraudulent activities. people will always find a way how to scam others. if someone will stop today, another one will be coming as a replacement.
this is the human nature already. but one can avoid from these scammers by at least doing your due diligence before transacting with them.

[bittraffic]

The blockchain is meant to be traced, it's more of a database of information for the money sent and receive, I'm sure the government can use that information if they see a crime is evident. We are in the digital age already, there is no room for mistakes if the regulation is serious about fighting financial crimes.

When they caught Ross of Silkroad, they also traced a lot of users thru the transactions on the blockchain. But there are more crimes using fiat money than crypto though.

[Franctoshi]

Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

Anything that has an advantage also has a disadvantage and illicit activities are part of it so far it involves money, however, the rate of fraudulent cases and money laundering activities that have been committed using fiat currency since its existence cannot be compared with money laundering cases experienced in the cryptocurrencies space.

[flyingcarpet]

Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

If the problem is only in crypto, let them come and solve it. But even before crypto, there were reports of money laundering. The problem has never been in crypto.

They usually get mandatory KYC verification from users. Other than that, I don't think there is a way to completely avoid these crypto-related situations. It is also wrong for states to make these regulations against people and exchanges that are only interested in crypto. Some officials think that the money laundering business was born with crypto. This shows that they are not really sincere in their struggle with this situation.

As I said, we are in the age of technology and there is nothing that cannot be followed. There are many precautions they can take if they really don't want such bad things to happen.

[Accardo]

The blockchain is meant to be traced, it's more of a database of information for the money sent and receive, I'm sure the government can use that information if they see a crime is evident. We are in the digital age already, there is no room for mistakes if the regulation is serious about fighting financial crimes.

When they caught Ross of Silkroad, they also traced a lot of users thru the transactions on the blockchain. But there are more crimes using fiat money than crypto though.

I remember reading an article stating that the use of bitcoin for crime and scam activities reduced drastically, but other tokens or altcoins are still top players for scams. Even before the institution of bitcoin, crime happened on the internet, without the internet they'll be no bitcoin or online scam, why is the issue settled on bitcoin as the player? We are well aware that bitcoin is used for transaction purposes, so if a person is not genuine they should be blamed not the means of payment. This bad publicity about bitcoin has reduced the number of investors who have genuine interest on bitcoin. And the bitcoin and financial crime tag won't be removed from people's brain anytime soon.

[Davidvictorson]

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

Just as with anything that has a good side, there is also the bad side. We know that bitcoin is being used to do a lot of good and we cannot deny that some where on the dark web someone is try to buy drugs, pay for weapons, or other illicit purposes using bitcoins. I think that there is a role that individual like you and me can play in preventing this by reporting to the authorities whenever we notice that such thing is happening there is also the role that corporate organizations that deal with bitcoin can handle this. For example some mixers are used for this purpose. People who are in charge of mixers can have a strong policy against this and report suspicious activity to the authorities and not let them find out themselves because that is when the authorities get the right to label bitcoin bad instead of the act and the people.

[Texac]

Gold and fiat money are also used by criminals, and they are used more than cryptocurrencies, so do you think we should have a solution for gold and fiat?  why is it always bitcoin while the benefits it brings us, you don't mention it?  everything has a downside, and just because criminals use bitcoin doesn't mean bitcoin is all bad.  It is stupid to believe what the government is spreading about bitcoin and not have any research when you create this thread.

[panganib999]

Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

The fact of the matter is that Bitcoin and crypto is not protecting of these criminals and their activities, With enough effort and research some crime investigators who worked closely against finding culprits across the internet were able to track some of these criminals who committed crimes in or outside the crypto space, and used the industry under the impression that it would help them keep the police at bay, only to then be caught because the moment that your information is revealed publicly, along with your address, no amount of mixing will steer the authority away from you.

I would argue that it's even harder to commit financial crimes in the crypto space, cause every transaction is recorded, with fiat you could literally go off the grid if you so desire.

[serveria.com]

Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.

What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?

It's not Bitcoin's or crypto's fault, fiat is also being used by criminals and on a much larger scale than crypto. There's nothing you can do to prevent it really. I don't think KYC or similar attempts to deanonymize users are necessary as it will likely make many legitimate users stop using it.

[karabiber]

Were there not money laundering and financial crimes when cryptocurrencies were not in our lives? Of course there was and the crimes committed in crypto may not be half the crimes committed in the classical order. The biggest feature of Bitcoin different from fiat or traditional money is that it is decentralized. The currency in question is not under the management of any institution or company. This gives users freedom when using Bitcoin. The monetary movements that governments can't track must have bothered them because instead of focusing on the technology and future of cryptocurrencies, they focus on financial crimes. Bitcoin and cryptocurrencies continue on their way stronger than ever in this frustrating process.