What is Bitcoin Money Laundering (Bitcoin Becoming Money Laundering)?

What is Bitcoin money laundering? In our country, criminals use internet, big data, and cloud computing technologies to engage in illegal financial activities in various ways. For example, scammers convert a large amount of RMB into cash through the internet, and then exchange this currency for bitcoin, which is further converted into legal tender or other virtual digital assets. One issue in this process is the high transaction fees associated with bitcoin.

In fact, historically, there have been increasing methods of money laundering, such as drugs and ransomware. From January 2018 to October 2019, the Russian Federation police organization conducted military operations in Ukraine, resulting in the seizure and confiscation of a large amount of bitcoin and other cryptocurrencies. Subsequently, countries began to counteract this.

Bitcoin Becoming Money Laundering

According to coindesk news, with the rise in bitcoin prices and an increasing number of people accepting bitcoin payments, money laundering has become a new source of income. According to data from blockchain analysis company Chainalysis, there were over $600 million in illegal activities flowing into cryptocurrency exchanges, lending platforms, and other financial services in 2017 alone. This research shows that at least 80% of global cybercriminals use bitcoin to evade anti-money laundering regulations. Additionally, the report found that from early 2018 to most of 2019, hackers have been transferring funds worth millions of dollars through the dark web to websites or mobile applications associated with scams.