Is cryptocurrency dangerous?  YES!  Cash too!  According to the US Treasury Department

Is cryptocurrency dangerous? YES! Cash too! According to the US Treasury Department

8:30 AM ▪ 4 min reading ▪ acc Eddie S.

The U.S. Treasury recently released its reports assessing the top financial crime threats in the United States. These documents highlight the evolution of risks between the persistence of traditional methods such as the use of cash and the emergence of new practices using cryptocurrencies.

Cryptocurrency money laundering

The continued preponderance of cash

Despite the rise of cryptocurrencies, the US Treasury Department’s money laundering report highlights that cash remains the main tool criminals use to hide their illegal activities and launder their funds. Cash allows you to ensure complete anonymity, cover your tracks and transact without leaving a trace.

The criminal activities that generate the most money to be laundered in the United States remain fraud, drug trafficking, cybercrime, human trafficking, and corruption. The Treasury highlights several areas of persistent risk! Abuse of shell companies, lack of transparency in the field of real estate, imperfect coverage of the non-banking financial sector, complicity of some professionals and non-compliance with regulations in the banking sector.

Although the report cited the growing threat of cryptocurrencies being used for fraud and terrorist financing, cash has not yet been dethroned. Its availability, anonymity and ease of use still make it the preferred means for criminals to launder huge sums of money from drug trafficking, prostitution, illegal gaming or other sources of illicit profits.

The emergence of crypto risks

However, the report clearly warns of the growing dangers of cryptocurrencies. The Treasury Department highlights that bad actors, from fraudsters to terrorists, are increasingly using digital assets to raise funds or transfer money around the world.

Cryptocurrency enables instant cross-border transactions with minimal fees and relative anonymity due to the absence of traditional financial intermediaries. The Ministry of Finance is particularly concerned about the financing of terrorism in this way, whether it is foreign groups such as the Islamic State or American extremists.

The report also highlights the challenges posed by decentralized finance (DeFi) and stablecoins. These services are subject to anti-money laundering regulations, but they struggle to comply and provide loopholes for criminals to exploit. The Treasury Department is also concerned about the development of online gaming, unique risk vectors.

In conclusion, if cash remains the preferred instrument at the moment, the rapid rise of cryptocurrencies in a still under-regulated environment worries US authorities. The Ministry of Finance calls for awareness and strengthening measures to combat money laundering and illegal financing in all its forms.

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