Cryptocurrencies represent the vanguard of new finance. However, recently, the mafia has started to be using it for illicit trafficking.

Bitcoin, in particular, has become a preferred medium for these underworld activities, as it allows you to exchange money anonymously.

Information technology has already made use of social media in the world of crime. Now with the cryptocurrencies, the universe of digital currencies is also breaking into money laundering and illegal International Money Transfer.

Two operations that, if done with Bitcoin, allow them to evade traditional systems and facilitate mafia clans or, more generally, those who conduct illegal activities to act with extra protection.

Yes, Bitcoin and cryptocurrencies are greater freedom for everyone (because we are not tied to the banking system) but it also offers greater freedom for those who commit crime.

So let’s see what’s happening and what we should do.

MONEY LAUNDERING WITH CRYPTUS

Money laundering has always been criminal activity. The money obtained illegally is put into circulation so as not to trace it back to the source and therefore to the illicit activities that originated the gain.

It is a very complex crime to prove, for this reason, the mafia uses different strategies to evade the authorities.

For example, if a clan sells drugs and has collected a lot of cash at the end of a month, the latter cannot be put into a current account. They would be discovered immediately.

Even keeping mountains of paper cash for them isn’t safe. They either need to reinvest it in other operations by buying other commodities, or it becomes difficult for them to use large sums of money.

There are activities in which dirty money is laundered without anyone noticing. This is not easy.

With the advent of cryptocurrencies, this recycling process is greatly simplified.

With Bitcoin and other digital currencies, dirty money can be converted into a currency that is used on the internet leaving no trace. Once the Bitcoins have been purchased, it is not possible to trace the identity of the owner of the currency.

Furthermore, to buy Bitcoins you only need a computer and an internet connection. You do not need a current account or the presence of intermediaries as happens in the traditional market.

This feature makes it much easier, faster, and safer to buy Bitcoins. An aspect that has not escaped the clans of organized crime.

According to a recent study by the Financial Markets Supervisory Authority (ESMA), money from illicit activities is massively laundered through cryptocurrencies. Around 5% of cryptocurrency trading volume is related to money laundering.

ESMA, however, is not the only authority that has made this finding. According to a recent report by the Financial Action Task Force (FATF) Financial Intelligence Unit (UIF), the volume of cryptocurrency trading related to money laundering amounts to approximately $2 billion per year.

The problem is the authorities have not yet found a solution to combat this phenomenon effectively.

ILLEGAL INTERNATIONAL MONEY TRANSFER WITH CRYPTUSES