Money Laundering in Crypto Assets

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.

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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.

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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

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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.

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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.

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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.

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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.

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08

TOKENS & STABLECOINS

Tokens can offer certain advantages to criminals where they are traded on DEXs that do not require KYC information.

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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.

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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