Money Laundering Activities Registered $2 Trillion Without Being Related To Cryptocurrencies


Money Laundering Activities Registered $2 Trillion Without Being Related To Cryptocurrencies

It is usual to hear that Bitcoin (BTC) and cryptocurrencies are used by criminals to process transactions and launder money. However, $2 trillion of fiat currencies is laundered each year and banks are engaged in these activities.

In a recent report released by Bloomberg, transactions that involve drugs and crimes account for $2 trillion a year. Governments and traditional financial institutions tend to generate smoke screens around virtual currencies trying to hide the illegal activities that banks perform. Indeed, banks that are recongnized around the world are involved in these illegal activities. Furthermore, fiat currencies are still the number one mode for transferring money for illegal purposes.

There are several banks such as Citi-group, JP Morgan and Standard Chartered that paid fines after being charged for violating sanctions. Additionally, they’ve laundered money that was related to embezzlement and drugs.

HSBC, for example, failed to monitor around $670 billion in transfers from Mexico. Additionally, they were not able to detect $9.4 billion in purchases of U.S. dollars. Colombian and Mexican drug cartels were able to launder illicit proceeds using the accounts of this financial institution. Because of this situation, the bank was fined $1.9 billion.

JP Morgan Chase had to pay a fine of $2.05 billion after ignoring red flags related to a Ponzi scheme. On the matter, Bloomberg reported:

“For 15 years or so, according to a U.S. court settlement in 2014, JP Morgan ignored red flags surrounding the dealing of Wall Street financier Bernard Madoff, who used his account a the bank to run a $65 billion Ponzi scheme, the largest ever uncovered in the U.S.”

This shows that corruption and fraud in the financial world were not created by virtual currencies, but the problem was always there. Money is controlled by financial companies and other banking institutions. These firms create rules based on personal interests, thus affecting society as a whole.

Cryptocurrencies work in a very different way. The rules that affect them cannot be modified or changed, thus there is predictability in the space and it is possible to be sure about specific outcomes.

Bitcoin and other virtual currencies work in a very transparent way. Transactions can be tracked and it is eventually possible to know who is behind a specific transaction, including the funds that were moved.

Bitcoin and digital assets are growing around the world and expanding in many different businesses. Although they have been affected by a bear market in 2018, regulatory agencies are taking a more active stance towards virtual currencies. The intention is to regulate them and control them even further to avoid scammers and fraudulent activities.

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