Money Laundering and the Future of Cryptocurrencies

There are many misconceptions about cryptocurrencies, including the idea that people can quickly become millionaires. In addition, the bad reputation for money laundering is still very much alive. Bitcoin has been associated with money laundering since its inception. However, very few illegal exchanges have been made with bitcoins or other cryptos.

Less than 3% illegal transactions

There have been two recent cryptocurrency crashes that have led to a bear market. These events caused the prices of many cryptocurrencies to drop dramatically. Both long and short term price changes have been observed in the cryptocurrency market.

Data from Coinmarketcap suggests that some cryptocurrencies have appreciated in value over time, while others have seen dramatic gains in the near term. This makes cryptocurrency an attractive prospect for many investors.

Cryptocurrency myths are hard to disprove. William O’Rorke, an ORWL crypto attorney, told a talk at Surfin’ Bitcoin that people have always said a lot of nonsense about laundering bitcoin money.

The myth of Bitcoin comes from its original use as a currency for certain websites accessed through the darknet, such as Silk Road. Criminals have been using cryptocurrencies for their illegal activities since the coin’s inception.

Toutofis, a Chainalysis study, reported that 0.15% of all transactions in the ecosystem in 2021 were illegal exchanges. This figure is decreasing every year as more crypto players follow anti-crypto regulations. In addition, a Cambridge survey found that only 3% of cryptocurrency exchanges do not perform KYC or Know Your Consumer.

France’s Pacte law requires cryptocurrency service providers to follow the same anti-money laundering regulations as traditional financial providers. In addition, the French AMF offers PSAN status to service providers dealing with digital assets. 43 crypto providers have been approved by the AMF, including Coinhouse and Binance. Providers that receive the status are called PSAN Service Actors or Digital Asset Service Providers. One of the benefits of receiving this status is that players can take advantage of tax benefits from the French government.

The MiCa Regulation should propose a new status similar to the AMF’s PSAN approval. This regulation should be implemented to strengthen the fight against money laundering.

Bitcoin: a real added value for the financial world?

Charles Sannat of Grenier de l’éco, Alexandre Stachchenko of KPMG France and Adli Takkal of Cercle du Coin took part in a conversation led by Richard Détente entitled “Is the value proposition of bitcoin (BTC) really real?”.

Regulatory government pressure on the cryptocurrency industry and the possibility of widespread crypto adoption via central bank digital currencies have made it difficult for experts to determine bitcoin’s future path.

By providing additional regulatory capabilities, these systems reduce crime. You may wonder if these programs are just another form of control; bitcoin challenges governments to their monopoly. Ultimately, it is everyone’s individual choice to sacrifice their freedom in favor of what some consider a more secure system.

It is unclear whether the fight against the state monopoly on cryptocurrency will be peaceful. Either way, it will be difficult to counter the monopoly that the state currently enjoys. Bitcoin should always be an emergency backup plan; moreover, current geopolitical trends indicate that it needs to become more robust.

In France, Bitcoin has long been considered unworthy, denigrated and even frowned upon. However, it is clear that the cryptocurrency is still there and the market is under significant commercial pressure. The reason is the increased demand. Apparently people are willing to pay more for it.

Large companies are breaking the barriers that separate their services to view financial products from a digital perspective. Moral niceties like fiat money are just a reincarnation of classic assets. Therefore, these money systems have the same flaws as the previous systems. In addition, governments are beginning to believe that they control the interests of the general public.

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