Less money laundering risk for privacy coins than others

Privacy coins don’t pose huge money laundering risks than other coins do, a whitepaper argues.

Share

These privacy coins including Dash, Monero, Grin and Zcash are claimed to be less risky in terms of money laundering than other cryptocurrencies according to a new whitepaper by a US international law firm called Perkins Coie.

The aforementioned cited coins by the paper fit well within the current financial regulatory structure that are being used by the following; the New York Department of Financial Services (NYDFS), financial Crimes Enforcement Network (FinCEN), the U.K.’s Financial Conduct Authority (FCA), Japan’s Financial Services Agency (FSA), and the Financial Action Task Force (FATF).

Regarding the evidence of illegal use in practice, Privacy coins cause less innate AML risk comparing to other cryptocurrencies. As darknet markets reports show, 90% of the addressed utilized for transactions on these markets was Bitcoin (BTC) while Dash (DASH), Zcash (ZEC) and Monero (XMR) all together constitute only 0.3% of such transactions.

Moreover, another way privacy coins outweigh from the pre-crypto money laundering methods like paper, payment or cash is that they provide some form of transfer record while 90% of money laundering takes place undercover since non-crypto payment types can be transferred between countries without being recorded.

Categories

Crypto Currency(5)

Latest News

Visa partners will be able to settle fiat transactions with crypto

USDC can be exchanged over the payment network to pay for the transactions made in fiat by Visa partners. ...

MAR 29, 2021

Clean energy Bitcoin mining pool with Argo Blockchain

Argo has teamed up with DMG blockchain and a new Bitcoin mining pool will be up and running which is powered by hydroelectric energy. ...

MAR 26, 2021

layer-two scaling is the solution offered by Double jump.tokyo for NFTs

Gods Unchained will have its alpha release launched this month which will be available to double jump.tokyo (DJT) and multiple other developers. ...

MAR 25, 2021

Vitalik Butrin criticizes how NFT is being used to makes celebrities richer

Mr. Butrin is of the idea that helping people like Elon Musk to make a profit through NFT (Non-fungible tokens) market is not using it in a proper way, yet he t ...

MAR 24, 2021

Tags

Money Laundering

coin

Tags

Money Laundering

coin