What is the crypto laundering trend?

The crypto laundering trend has prompted a response from global regulators that have moved to bring cryptocurrencies under the scope of existing anti-money laundering regulations or introduced new AML/CFT laws applicable to cryptocurrency service providers.

How can cryptocurrency service providers detect and prevent money laundering?

In order to detect and prevent money laundering, cryptocurrency service providers should be vigilant for suspicious transactions and suspicious customer behavior. In 2020, the Financial Action Task Force (FATF) released a report into the methodologies of crypto laundering, which set out the following red flag indicators:

How much cryptocurrency is laundering from your wallet?

The report notes that "while billions of dollars' worth of cryptocurrency moves from illicit addresses every year, most of it ends up at a surprisingly small group of services, many of which appear purpose-built for money laundering".

How much cryptocurrency did criminals launder in 2021?

Criminals laundered $8.6bn (£6.4bn) of cryptocurrency in 2021, up by 30% from the previous year, a report by blockchain data company Chainalysis says. It says police could strike a "huge blow" by targeting key services used to launder cryptocurrency by criminals.