Fiat, a government-issued currency, is still the best choice for financial criminals.
Concerns are always on the possibility of crypto-assets being the nefarious reasons. However, the US Treasury Department just released something that dispels these anxieties.
Despite widespread fears that cryptocurrency could be used for criminal purposes. According to a newly published report by the US Treasury indicates that the bulk of financial crimes is still happening using fiat money.
The US Treasury presented a three-year report on money laundering, proliferation financing, and terrorist financing early this month. And they were all based on digital assets.
It’s Fiat, Not Crypto!
Fiat currencies and traditional money are playing thier part in this circumstance. However, according to many perceptions, they are more likely to come into play.
The Treasury’s findings include a detailed discussion of virtual currencies, stating that both their user base and market capitalization have expanded dramatically since the previous risk assessment in 2020.
However, these reports found that criminal flows via fiat currency and established networks continue to outnumber those involving cryptocurrency.
Crypto Still A Good Choice For Crime
According to the National Money Laundering Risk Assessment, “virtual assets” are an ever-evolving domain within money launderers’ expanding armory for concealing their finances.
It singled out DeFi and “anonymity augmenting technology” as possible perpetrators.
Throughout the pandemic, virtual assets are being extensively used in phishing assaults and ransomware scams.
Shady operators may use pledges of profit from the unpredictable cryptocurrency market to entice victims into disclosing personal information or infecting their devices with viruses.
The attackers may then demand payment in crypto following the attack, which is both pseudonymous and irreversible.
In a recent Chainalysis Crypto Crime Report, many criminals use over-the-counter brokers to launder their cryptocurrencies.
OTC brokers are individuals or businesses that assist transactions between buyers and sellers who do not wish to (or are unable to) conduct business on a cryptocurrency exchange.
A Staggering Amount
Meanwhile, a United Nations report says that money laundering costs the global economy between $800 billion and $2 trillion per year.
This equates to between 2% and 5% of gross domestic output. Today, almost 90% of money laundering remains undetected.
However, technological advancements have led to the development of more effective tools. Criminals continue to use these advancements to move dirty money.
