Europol published a 20-page document explaining the link between transnational crime and cryptocurrency.
Among the points included in the document:
The increasing use of cryptocurrencies in criminal activities and money laundering.
The document also explained that:
Criminals are increasingly using cryptocurrencies as a means of payment or as a currency for investment scams. However, the use of cryptocurrencies to finance terrorism is limited.
P2P trading
The document outlined the risks involved in P2P trading.
P2P trading is the direct trading of cryptocurrencies between peers without the need for an intermediary. P2P trading reduces the risk of being traced by bypassing the identification process required by exchanges, but it carries a high risk of fraud due to the lack of transaction security. Users wishing to buy or sell cryptocurrencies communicate directly to complete the transaction according to agreed-upon terms, rather than those set by the exchange. In fact, direct communication between users could lead to one party canceling the deal by failing to pay the agreed amount.
Money Laundering
Money laundering networks have embraced cryptocurrencies and offer their services to other criminal entities.
These networks already rely on a well-established infrastructure, such as numerous bank accounts, as well as in-depth knowledge of the banking system and the use of financial technology.
Money laundering networks provide services to other criminal networks, which may include acquiring or trading cryptocurrencies, legitimizing criminal assets, and withdrawing funds from criminals’ accounts. Professional money laundering networks pose a significant threat and enable other criminal networks to operate. Dark web marketplaces advertise cryptocurrency money laundering service providers. They also provide information on how criminals can withdraw cryptocurrency, such as exchanging Bitcoin for gift cards or prepaid debit cards.
Excerpts from Europol
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