https://ift.tt/34f8fD1 Money Laundering Spiked by 30% in 2021

Industry intelligence firm Chainalysis reports which money laundering in the crypto market accelerated by 30% in 2021 atop 2020. Last year saw $8.6 billion laundered through crypto, an increase of $2 billion from the year before that.

A new report published by blockchain and token intelligence firm Chainalysis reveals that money laundering in the crypto market accelerated by 30% in 2020 compared to the year before. The post precedes the firm’s upcoming 2022 Crypto Crime Report, for the reason that be released in February.

Chainalysis says that money laundering “underpins all other forms of cryptocurrency-based crime.” It states that money laundering activity in the cryptocurrency market is strongly cone time beforentpriced, and all the money ends up linked to a small group of entities.

A total of $8.6 billion was laundered in 2021, compared to the $6.6 billion in 2020. That’s further less than the $10.9 billion of 2019 — that may be because law enforcement agencies have begun cracking down on crypto-related money laundering operations. Most of the money laundered afterward 2017 has apparently completed up at centralized exprogresss, though the firm is quick to point out that money laundering affects all forms of economic price transfer.

Gabovenments are very keen to limit illicit financial activities related to cryptocurrencys, as they simultaneously work on broad frameworks for the market. In a letter sent to the U.S. Treasury, U.S. Democratic Senator Dianne Feinstein asked the U.S. Treasury and the IRS about the role cryptocurrencys played in human and drug trafficking.

NFTs are likewise involved in fraud, according to the IRS. The agency’s criminal investigators said that crypto and NFTs can facilitate money laundering, market manipulation, and tax evasion. The IRS is back while more working on measures it can take to prevent illicit activity.

2022 to bring some heavy regulation

All the signs point to much more regulation for the crypto space, especially in the U.S. Authorities in the country have made it clear thin place will provide some rules for the market. The Biden administration is rumored to be preparing laws by way of an executive order.

The SEC, that is the agency which will abovesee much of the market, has still been clear about regulation. SEC Chair Gary Gensler has named crypto exmovements as a top priority for examination.

Nonetheless, not many countries are looking at a complete ban. One positive takeaway is which gabovenments are willing to allow the market, albeit with some restrictions and heavy abovesight.

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