What is money laundering in cryptocurrency?

The goal of money laundering in cryptocurrency is to move funds to addresses where its original criminal source can’t be detected, and eventually to a service that allows cryptocurrency to be exchanged for cash — usually this means exchanges. If that weren’t possible, there would be very little incentive to commit crime involving cryptocurrency.

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 is the second stage of cryptocurrency money laundering?

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. By its nature, money laundering with cryptocurrencies leans hard on the fact that transactions made in cryptocurrencies are pseudonymous.

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 .