Monday, October 25

Thousands of cryptocurrencies, including Bitcoin, are used for money laundering

Venezuela started paying with Bitcoin to third countries with which it traded against American sanctions. So, are thousands of cryptocurrencies widely used in cross-country trade? What are the limits to this? Economist Enver Erkan told Sputnik.

It has been reported in country media that Venezuela pays countries with trade relations in Bitcoin to reduce the effects of US sanctions on its economy. This move of the Caracas administration raised the question of “can trade between countries be done through thousands of cryptocurrencies including Bitcoin”. Tera Investment Economist Enver Erkan evaluated the issue to Sputnik.

“After Bitcoin emerged as a market phenomenon and increased in popularity, it also gained popularity as a money laundering tool. The fact that crypto money exchanges are not subject to any supervision has been a factor that accelerated this virtual currency movement. “The lack of use of the banking system, the lack of mobility in real currencies and the anonymity have also increased the use of these currencies in money laundering,” he said.

Reminding that there are thousands of different currencies cryptocurrencies despite the discussion of the issue over ‘Bitcoin’, Erkan said, “Similar transactions can be made not only with Bitcoin but also with other currencies. However, another problem with these coins can be hacking and cyber attacks and wallet emptying. In general, we are talking about a market that has not been fully organized despite its popularization and certain control mechanisms. “It still has serious system vulnerabilities and reliability deficiencies.”

Dutch Couple Caught Laundering With 2,500 Bitcoins!

In the Netherlands, an incident has been uncovered that does not sound like the famous crime duo Bonnie and Clyde. According to the Dutch police statement, a couple had been caught on their radar for a long time. The reason for the couple to be on the radar is money laundering.

The couple laundered $ 19 million in the past two years, according to an investigation by the Dutch Public Prosecutor’s Office, which will be held at the Rotterdam District Court. Security forces who examined the accounts noticed that the couple used 2,500 Bitcoins (BTC) to launder money, holding more than $ 33 million. Dutch security forces also confiscated the couple’s cell phones, computer equipment such as hard drives, jewelery, and vehicles.

However, it was announced that 138 thousand Euros and 40 thousand Euros were confiscated from the accounts of the companies of the couple and both companies were fined 45 thousand Euros. The couple living in Hilversum, the Netherlands, without informing the tax authorities and regulators, reported to do.

However, it was learned that they found customers to launder money through crypto money on the dark web. It was also added that they did not ask for identification from any of the customers they found and none of them did the KYC process. The couple, whose courts were seen, reportedly faced two and two and a half years in prison.

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Searching for Solutions to Prevent Money Laundering!

Cryptocurrencies are of particular interest to the black economy, as in most countries they are tax-free, banks or governments have less chance of seizure, and many of them are untraceable. Many people who do not want their transactions to be tracked, want to be exempt from taxes and pursue illegal business prefer cryptocurrencies.

As the traceability, ie traceability of transactions, is lower in privacy-oriented cryptocurrencies such as Monero, it is the favorite of the black economy. However, many countries and regulatory bodies have also declared war on this situation.

For example, the United States National Revenue Administration (IRS / Tax Office) announced at the beginning of September 2020 that it will award companies that develop a technological vehicle that can follow Monero (XMR). In October 2020, two companies that developed vehicles (Chainalysis and Integra FEC) gave some of the prize in question.