Cryptocurrency, Featured

Fragile Anti Money Laundering Laws Allowed 97 Percent Of Criminal Bitcoin Moving To Exchanges

In the first 9 months of this year, cryptocurrency frauds through hacking of exchanges and trading platforms increased to $927 million. Despite such a gargantuan amount, anti money laundering laws have really been applied by only a handful of nations.

A new report by CipherTrace claims that the crypto frauds rose up nearly 250 percent from the level observed in the previous year. There has been a steady growth in numbers of smaller thefts in the $20 to $60 million range, which totals approximately $173 million in the third quarter of 2018.

CipherTrace’s third-quarter report further reveals that despite anti money laundering laws are highly effective, still $927 million of digital currency was stolen during the entire 2018. The report also claims that around 5 percent of all Bitcoin transferred to badly regulated exchanges came from illegal or criminal activities before the amount is undetected into global financial payments system. In another clarification, the report notifies the laundering of a mammoth amount of Bitcoin that would stand approximately $2.5 billion in recent prices.

“This extensive research shows that regulation does have a direct correlation in hindering criminal activity, and we are on the right track to instill further trust in the crypto ecosystem,” CipherTrace’s chief operating officer, Dave Jevans, as mentioned in the press release published by Business Wire.

Jevans further expressed his hope to see cryptocurrency laundering getting highly reduced in the next 1.5 years as, according to him, digital currency AML regulations are already rolled out globally. However, the leading provider of security, compliance and enforcement solution provider, CipherTrace’s report declined to name those badly regulated exchanges for which the illegal transactions have taken such height, The Economic Times reported.

Most importantly to note, around 97 percent of direct Bitcoin payments from the fraudsters or criminals passed on to the exchanges in those nations that are suffering from fragile anti money laundering laws. Hence, now this is the high time for each country to implement the proper regulations that can totally arrest the illegal payments through the hacking of trading platforms and exchanges.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Having over 11 years of experience in Journalism, Subhro has become fascinated by cryptocurrency over the last couple of years.

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