JR
TLDR: Contrary to what many believe, money laundering through cryptocurrencies is much less common than through traditional cash. Blockchain's permanent records make illegal transactions easier to spot.
📝 Blockchain Creates Permanent Records That Everyone Can See Unlike regular banking systems where transactions can be hidden through fake companies and foreign accounts, blockchain transactions stay on the record forever. Investigators can use special tools to follow illegal money in ways that are impossible with cash.
⚠️ Crypto Exchanges Have Strict Rules Major crypto exchanges follow global anti-money laundering regulations by checking customer identities, monitoring transactions, and reporting suspicious activity. These are the same rules that banks follow, making it harder for criminals to misuse cryptocurrency.
🤖 Advanced Technology Improves Fraud Detection New technologies like AI-powered blockchain analysis help identify suspicious patterns faster. Smart contracts can automatically block money from going to blacklisted wallets.
While news about crypto crime gets a lot of attention, studies show that illegal transactions make up less than 0.2% of all crypto activity. Compare this with regular currency, where crores of rupees are laundered through traditional banks each year.
Crypto's visibility makes it a poor choice for large-scale money laundering. In reality, criminals prefer cash, property, and foreign accounts.
Rather than making money laundering easier, blockchain is creating new standards in financial security. Its transparency, automation, and compliance tools make financial crime more difficult. As our government and regulators continue to accept blockchain technology, our financial systems will become safer, more efficient, and more accountable.
For more details, please check the original Coinbase article.
