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US Treasury Department confirms fiat money for money laundering is more popular than Bitcoin

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Despite growing concerns about crypto crime and sanctions evasion, fiat remains king when it comes to illicit commerce.

Earlier this month, the US Treasury Department announced three-year report related to money laundering, terrorist financing and arms sales – all of which refer to virtual assets.

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The Ministry of Finance notes that fiat currencies and traditional methods are still in use much more popular versus cryptocurrencies in the realm of illicit finance.

The Ministry of Finance said “virtual property” is a world that is constantly evolving in money launderers' toolkit to hide their money.

The Ministry of Finance specially called DeFi , and “anonymous enhancement technology” is a potential culprit.

Virtual assets are believed to have played a key role in phishing and ransomware attacks throughout the pandemic.

The unrighteous use promises of high profits from the volatile cryptocurrency market to lure victims Disclosure of personal information their device or install malware on the device.

Overall, the report claims that the use of cryptocurrencies as a method for money laundering is on the rise.

This corroborates a recent Chainalysis report showing that more funds have been sent to criminal blockchain addresses by 2021.

However, the Treasury Department acknowledges that fiat is still king when it comes to crime. They stated: “The use of virtual assets to launder money remains Much lower versus fiat money and traditional methods.”

Furthermore, while crypto crime is on the rise, Chainalysis also finds that the share of illicit funds in crypto is at an all-time low, accounting for only 0,15% total transactions.

This is down from 0,62% in 2020 and 3,37% in 2019.

P2P transactions and anonymous wallets can help users evade financial controls. However, most blockchains – including Bitcoin – use a very transparent public ledger, which can make it easier to track down criminals.

Illegal trading using cryptocurrencies has become a hot topic since the end of the year, as western officials worried about Russia's use of cryptocurrencies to evade sanctions.

Tom Robinson – CEO of blockchain analytics firm Elliptic – notes that cryptocurrencies “can and will be used to evade sanctions, but not a "silver bullet".


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