Cryptocurrency is believed to be a tool for terrorists and money launderers. When the western leaders were asked to present their thoughts about cryptocurrency they pushed out a statement below;
‘The underlying blockchain technology is expected to have some potential. But as the case of $400 Million of NEM stolen from Coincheck last week is a signal showing that laundering huge amounts of cryptocurrency is considerably hard. On the other hand, laundering of Fiat currency is extremely easy’.
But Cryptocurrency is not a money launderer’s heaven as it is believed to be. The British Prime Minister last week broke her silence on cryptocurrency saying ‘The first prospect is to assure that the people don’t use bitcoins for illegal activities. Hence, we want to make sure that our people don’t have a black web funded with bitcoins and this is something which should be a concern for all of us today. So if someone is a bitcoin dealer in the US, they have same know-your-customer requirements and BSA requirements’.
In a recent report, it was concluded that from 2013 to 2016 1% bitcoin transactions originated from illegal means. On the other hand, it is estimated that between 2% to 5% of global GDP in US Dollars is laundered every year. Thus, not that only cryptocurrency is hard to launder, but its acceptance is significantly lower than Fiat currency.