Regulation of Cryptocurrency Strategies for Government to Tackle Money Laundering

Money Laundering

Cryptocurrency technologies started to come up with new and advanced tools in 2017. New technological upgrades made the decentralization of the global eCommerce community possible. However, the same technological updates also allowed NFTs facilitate and the public to develop tools capable of money laundering.

Unfortunately, countries such as Russia, North Korea, and Iran began using these technologies for their benefit in corrupt practices like money laundering and evading various international sanctions.

Criminals and terrorists have benefited from the fact that there are no specific or uniform regulations regarding cryptocurrencies in various countries. Moreover, with the absence of the concept of physical borders in digital currencies, acts like money laundering have become very easy.

Is crypto only improving our lives?

Over time, cryptocurrencies have started to improve lives and pave the way towards a digital future by making possible fats and cheaper transactions. Unlike traditional money, which is only specific to being a medium of payment, cryptocurrencies were developed with a unique idea.

The initial idea behind cryptocurrencies was decentralization. This means that all crypto transactions take place without any middlemen’s involvement and are recorded on a public ledger.

This peer-to-peer network of transactions was developed to ensure security and end-to-end encryption of transactions between both parties. Now you might be wondering how criminals utilize crypto in their evil means.

Examples of evil acts include using crypto assets to trade illegal products and services easily. Such products include drugs and weapons whose services range from hiring assassins to child pornography.

Money Laundering

The opportunities for such heinous acts are created with the help of the dark web. Moreover, these criminals also assist cyber criminals in hacking crypto wallets and even crypto exchanges. Aside from acquiring the victim’s crypto assets and committing financial fraud, these acts are also popular in North Korea with the aim of identity theft.

Due to the absence of the concept of borders in the network of cryptocurrencies, it has become straightforward for all sorts of terrorist organizations to commit heinous crimes across the globe without having to be there. This also helps them stay lowkey and reduces the risks of getting caught.

Two main factors make money laundering through crypto a straightforward task. Firstly, the anonymity aspect of crypto transactions allows criminals to commit financial fraud easily and fastest. Secondly, there are no uniform regulations regarding cryptocurrencies throughout the world. This is also why no anti-money laundering programs or schemes exist to tackle the situation.

Helpful strategies

As mentioned earlier, the absence of uniform regulations across the globe is the main reason there are no anti-money laundering (AML) schemes or programs.

These programs and strategies must be required to monitor transactions and occasionally assess customers’ risk.

Another essential step to be taken is to pay attention to the crypto exchanges that are responsible for trade. No matter how anonymous the crypto wallets and transactions may be, they are never a secret from the crypto exchanges.

While all these plans exist, the significance of uniform regulations cannot be overlooked. Delayed regulations are constantly posing a threat to investors’ investments and digital assets.

New applications and software have also been introduced to assist the trade journeys of investors. Among this software, the bitcoin trading software is a notable name. It is famous for automatically swapping cryptocurrencies with other available traders, helping them benefit from the value fluctuations in the currency. Moreover, investors can easily track current prices and trade the currencies on demand.

Regulating cryptocurrency exchanges is expected to set up international rulings and standards regarding crypto transactions. In addition, these regulations should include several aspects revolving around the security of crypto assets, including reduced risk and money laundering screening programs.

In addition, privacy coins developed to ensure robust data safety and privacy should be eliminated from the crypto marketplaces. This will be a great initiative to reduce financial frauds such as money laundering.


Money laundering is a significant threat to the safety and well-being of the world and the crypto market itself. If it is not contained during its early stages, it can result in far worse crimes shortly. Most of them have already started occurring as the technologies are advancing.