What is cryptocurrency money laundering?

The same concepts that apply to money laundering using cash apply to money laundering using cryptocurrencies. The first stage of the cryptocurrency money laundering stage is the placement stage. During placement, illicit funds are placed into the legitimate financial system. The illegal funds may be present in two different forms.

What are the stages of cryptocurrency money laundering?

Either way, the placement stage establishes the circumstance that a criminal has cryptocurrencies of an illegal origin available on a wallet. The second stage of the cryptocurrency money laundering stage is the layering or hiding stage. In this stage, the criminal facilitates crypto transactions to disguise the illegal origin of the funds.

Is cryptocurrency still the preferred medium for money launderers?

While there has been much focus on using cryptocurrency to launder money, it is essential to remember and not to lose focus that “cash” is still the preferred medium for money launderers. There needs to be a change in thinking, bringing “fraud” into the conversation regarding regulatory compliance and specifically money laundering.

What are the different methods of money laundering?

The first money laundering method involves cryptocurrency exchanges. Numerous cryptocurrency exchanges are regulated, comply with applicable laws and regulations, and cooperate with law enforcement authorities. The majority of them also require customer identification and conducts customer due diligence .