UK Government Report Explains that Cryptocurrencies Carry Low Risk of Money Laundering.
For a very long time, it was believed that cryptocurrencies such as bitcoin have made it very easy for cyber criminals to engage in money laundering.
The critics of Bitcoin and other forms of cryptocurrencies have cited a number of deep web cases of money laundering to support the argument that the use of digital currencies is simply not safe.
Although a lot of people are inclined to believe in this theory conjured up by the critics, there has been no concrete evidence in the form of statistics to suggest that the critics are right about the safety concerns of cryptocurrencies.
As a matter of fact, these critics reveal more a lack of understanding of the blockchain technology than anythingelse.
According to a report that was published by the UK government last month, cryptocurrencies including bitcoin were deemed a “low risk” for money laundering cases and terrorism financing.
In other words, cyber criminals and dangerous terrorist organizations are not turning towards Bitcoin or any other cryptocurrency to break the law and make life difficult for the people of the world.
The supporters and users of bitcoin can breathe a sigh of relief as the critics have been proved wrong yet again.
Given the huge number of accusations with which the Bitcoin community is bombarded, positive news like this will be of immense help in easy the difficulties of the people who are pro Bitcoin.
The report was a part of the National Risk Assessment that was conducted by the HM Treasury and was released on 15th October.
The government have good reason to believe that cryptocurrencies pose the lowest risk rating among all the money laundering vehicles that are available to criminals and cyber criminals.
Other money laundering vehicles that present far greater risk include cash, banks and accountancy services.
"The money laundering risk associated with digital currencies is low, though if the use of digital currencies was to become more prevalent in the UK this risk could rise," is what the report stated.
Furthermore, the report acknowledged the fact that the current incidents of observed money laundering do not usually involve technology.
The cases of technology based money laundering are few and far between. Majority of the criminal activity has been carried out in transactions to illicit online markets.
Here’s more information from the report: “There are a limited number of case studies upon which any solid conclusions could be drawn that digital currencies are used for money laundering.
There are concerns around anonymity, faster payments, and ability to provide cross border remittances and facilitate international trade. These issues are similar to issues identified with many other financial instruments, such as cash and e-money."
To sum it all up, there is very little evidence to show that cryptocurrencies such as Bitcoin are being used by criminals and terrorist organizations to raise funds, pay for infrastructure or transfer funds.