Fiat currencies are more commonly used in criminal activity than bitcoin, says the Treasury Department

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A report released by the U.S. Treasury Department earlier this month covered money laundering and terrorist financing. A cryptocurrency thread was included. The topic was presented as ambiguous, suggesting that US officials are finally beginning to look at the issue in a more complex way.

Treasury Department writes about cryptocurrencies

There are many risks associated with these areas, according to U.S. authorities. However, fiat currencies and traditional networks have been used in crimes far more often than cryptocurrencies.

Nonetheless, officials say virtual assets are an ever-changing market and a sure opportunity for money launderers. Moreover, cryptocurrencies and DeFi are “technologies that increase anonymity.”

Additionally, virtual resources have played an important role in phishing attacks and ransomware scams, which were particularly prevalent during the pandemic.

Overall, the report found that the use of cryptocurrencies as a method of money laundering – including funds from drug trafficking – is on the rise. This would be confirmed by a recent Chainalysis report, which stated that in 2021, more cryptocurrencies were sent to criminal addresses than ever before.

But the Treasury Department also acknowledges that fiat currencies continue to reign supreme when it comes to criminals’ toolkit.

The use of virtual assets for money laundering is much less than with fiat currency and more traditional methods.

– stated in the report.

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