Your Legal & Financial Guide
MONEY LAUNDERING IN
CRYPTOASSETS
01
CRYPTOASSET EXCHANGES
Cryptoasset exchanges provide essential liquidity to crypto markets – acting as vital gateways between the fiat and cryptoasset ecosystems. Thus, exchanges inevitably feature heavily in cryptoasset-related money laundering activity.
Your Legal & Financial Guide
02
PEER TO PEER (P2P) PLATFORMS
P2P platforms play an important role in the cryptoasset ecosystem by enabling cryptoasset users to interact without the involvement of large, centralized intermediaries.
Your Legal & Financial Guide
03
DECENTRALISED FINANCE (DEFI)
Criminals can use the DeFi ecosystem to launder the proceeds of crime. Users of Dapps can generally access these services without having to provide KYC/CDD information
Your Legal & Financial Guide
04
CRYPTOASSET ATM
In many jurisdictions, cryptoasset ATMs remain unregulated – or of unclear regulatory status. This makes them an attractive target for criminals, who use ATMs to convert large amounts of cash into cryptoassets.
Your Legal & Financial Guide
05
CRYPTOASSET GAMBLING & GAMING SERVICES
Many online gambling and gaming services do not require KYC and CDD information. Online casinos have begun to accept cryptoassets from customers. Similarly, new online exchanges enable users to swap digital assets for in-game currencies.
Your Legal & Financial Guide
06
CARDS
Cryptoasset prepaid cards allow crypto users to purchase real-world goods and services seamlessly. Criminals have been trying to take advantage of the convenience of cryptoasset prepaid cards to quickly move dirty funds.
Your Legal & Financial Guide
07
MIXERS & PRIVACY WALLETS
Mixers play a vital role in cryptoasset laundering due to their ability to obscure transaction flows. By collating and redistributing BTC among numerous users, these services break the chain of end-toend traceability around transactions on cryptoasset blockchains.
Your Legal & Financial Guide
08
TOKENS & STABLECOINS
Tokens can offer certain advantages to criminals where they are traded on DEXs that do not require KYC information.
Your Legal & Financial Guide
09
NON-FUNGIBLE TOKENS (NFTS)
The ability to buy and sell digital art and goods presents new opportunities for fraud, money laundering and sanctions evasion. NFT markets are also characterized by uneven regulatory oversight.
Your Legal & Financial Guide
10
NON-FUNGIBLE TOKENS (NFTS)
The use of privacy coins for laundering purposes is also heightened where the exchanges that criminals attempt to exploit are unlicensed and non-compliant.
Your Legal & Financial Guide
Your Legal & Financial Guide
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Adv. P. M. Mishra Lawyer & International Regulatory Expert