A new report published by Bloomberg is shedding light on the dark world of crypto.
As per the article, close to $100B in the name of illicit funds were given by suspect or illegal digital wallets present around the crypto world. Moreover, this report also explained how bad actors were making use of stablecoins that account for more illegal transactions in the world of crypto.
What is even more shocking is how a huge chunk of these questionable transactions are related to centralized exchanges.
So many officials around the globe are starting to intensify rules related to stablecoins and digital asset platforms. The goal is related to curbing the whole crypto use in criminal behavior such as cases linked to money laundering and financing of terrorist activity.
For now, we’re well aware of how lawbreakers keep on finding the means to bypass the restrictions and rules in place. More discussion revolved around stablecoins that try to attain a more steady value that’s supported by cash reserves and bonds, including centralized exchanges that serve as serious pillars for today’s digital asset market.
So many illegal funds arising from the likes of darknet marketplaces, ransomware, fraud, and more get piled up in five different places for centralized exchanges. Meanwhile, those involved make use of financial services that are decentralized including gambling arenas, crypto mixers, and blockchain reserved for money laundering purposes.
The fact that such places feature high liquidity rates enable simple conversion and also easily integrate with financial services says so much. They are a huge attraction for illicit actors around the globe.
As days go by, the large volume of these illegal funds ending up at exchanges is at a downfall, possibly due to stricter checks and rules getting rolled out. The amount keeps dropping to nearly $780M per month from what was seen at $2B in the past. The figures for these intermediary wallets are on the rise, however, which criminals use to bypass funds that would obscure their origin.
This keeps on growing at a fast pace at these exchanges which feature ‘know your customer’ regulations and therefore avoid any illegal activity detection as well.
Today, the absolute value for stablecoins keeps skyrocketing to hit the $160B mark from what was just $29B at the start of 2021. While this is mostly utilized by crypto speculators for park funding amongst trading activities, they’re similarly used for the likes of getting remittances. This reflects the growing interplay taking place between mainstream money and digital assets.
The risk of using stablecoins is not small including the likelihood of having your stablecoins frozen by the authorities. Remember, crypto today is getting to be an integrated asset in today’s modern finance world. There are plenty of techniques for detection like behavioral analysis that identify schemes carried out illegally. Still, the fact that it’s happening is a concern to some.
Image: DIW-Aigen
Read next: Google Makes Major Fivefold Increase To Payments In Its Vulnerability Reward Program
As per the article, close to $100B in the name of illicit funds were given by suspect or illegal digital wallets present around the crypto world. Moreover, this report also explained how bad actors were making use of stablecoins that account for more illegal transactions in the world of crypto.
What is even more shocking is how a huge chunk of these questionable transactions are related to centralized exchanges.
So many officials around the globe are starting to intensify rules related to stablecoins and digital asset platforms. The goal is related to curbing the whole crypto use in criminal behavior such as cases linked to money laundering and financing of terrorist activity.
For now, we’re well aware of how lawbreakers keep on finding the means to bypass the restrictions and rules in place. More discussion revolved around stablecoins that try to attain a more steady value that’s supported by cash reserves and bonds, including centralized exchanges that serve as serious pillars for today’s digital asset market.
So many illegal funds arising from the likes of darknet marketplaces, ransomware, fraud, and more get piled up in five different places for centralized exchanges. Meanwhile, those involved make use of financial services that are decentralized including gambling arenas, crypto mixers, and blockchain reserved for money laundering purposes.
The fact that such places feature high liquidity rates enable simple conversion and also easily integrate with financial services says so much. They are a huge attraction for illicit actors around the globe.
As days go by, the large volume of these illegal funds ending up at exchanges is at a downfall, possibly due to stricter checks and rules getting rolled out. The amount keeps dropping to nearly $780M per month from what was seen at $2B in the past. The figures for these intermediary wallets are on the rise, however, which criminals use to bypass funds that would obscure their origin.
This keeps on growing at a fast pace at these exchanges which feature ‘know your customer’ regulations and therefore avoid any illegal activity detection as well.
Today, the absolute value for stablecoins keeps skyrocketing to hit the $160B mark from what was just $29B at the start of 2021. While this is mostly utilized by crypto speculators for park funding amongst trading activities, they’re similarly used for the likes of getting remittances. This reflects the growing interplay taking place between mainstream money and digital assets.
The risk of using stablecoins is not small including the likelihood of having your stablecoins frozen by the authorities. Remember, crypto today is getting to be an integrated asset in today’s modern finance world. There are plenty of techniques for detection like behavioral analysis that identify schemes carried out illegally. Still, the fact that it’s happening is a concern to some.
Read next: Google Makes Major Fivefold Increase To Payments In Its Vulnerability Reward Program
