Nearly 80% of Bitcoin transactions may be related to  money laundering - CipherTrace research

  • Bitcoin cross-border transactions may be involved in money-laundering.
  • Weak KYC proscedures put large financial institutionsl at risk.

Bitcoins were moved across the borders in 74% of all transactions in 2019, which heightens risks of money laundering, the experts of the cryptocurrency research company CipherTrace found out. They also added that insufficient KYC/AML measures may pose risks for bands and other regulated financial institutions. 

They have analyzed how the implementation of the Financial Action Task Force (FATF) recommendations for the cryptographic industry will affect banks that are increasingly involved in servicing industry participants.

FATF published new rules for virtual asset service providers (VASPs) in June 2019 and gave organization twelve months to implement them. 

CipherTrace analyzed KYC procedures of 500 leading VASPs and came to the conclusion that 57% of them had weak or insufficient  KYC/AML measures. While the figure is lower than a year ago (67%), it is still alarmingly high.

The experts pointed out that  criminals are constantly looking for new loopholes and quickly use them to launder money and hide their traces. It means that the cryptocurrency exchanges need to strengthen their KYC/AML measures to reduce the risks for  both buyers and sellers of the cryptocurrency, especially, if the transaction involves fiat currency. 

CipherTrace estimates that a typical large U.S. bank handles over $2 billion in crypto-related payments per year without identifying them as such. The company's specialists believe that the banks cannot cope with this problem on their one. The cryptocurrency industry has to strengthen its approach to KYC/AML.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Crypto markets prepare for a bullish October

Bitcoin price is experiencing a momentary downswing as it sets up a falling wedge pattern. Similar to the big crypto, Ethereum price is also forming a bullish pattern. However, Ripple seems to be bouncing off a support floor without any technical formations in play.

More Bitcoin News

XRP and XLM in trouble as CBDCs aim to make cross-border remittances cheaper and faster

The outcome of recent Central Bank Digital Currency (CBDC) pilots shows slashed cost and reduced transaction time. Cryptocurrencies currently utilized for making cross-border settlements, Ripple (XRP) and Stellar Lumens (XLM), are likely to face stiff competition from CBDCs. 

More Ripple news

Shiba Inu price stabilizes as SHIB bulls prepare for 20% take-off

Shiba Inu price saw a massive uptrend on September 16 but was soon undone in the next couple of days as it approached a stable support floor. Investors can expect SHIB to launch here, retesting crucial resistance barriers.

More Shiba Inu News

Cardano price eyes 30% breakout if ADA bulls can overcome this strong hurdle

Cardano price is in a suspended state after its recent breakout from the bullish pattern. If ADA finds a launching pad, there is a high chance a new uptrend begins. Interestingly, there is a confluence of support, indicating a bullish outlook.

More Cardano News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast