Sat 13 April 2024 ▪
4
min reading ▪ acc
Cryptocurrencies, often touted for their potential for financial emancipation, are sometimes misused for nefarious purposes, thus facilitating money laundering. This malign use of blockchain technology has sparked a strong backlash, especially after a recent TracFin report highlighting the involvement of cryptocurrencies in suspicious financial transactions in France.
Cryptocurrencies: The New French Wild West of Money Laundering
Historically, the presence of cryptocurrencies in money laundering cases is of great concern to our leaders. Elizabeth Warren, the Democratic senator from Massachusetts, who was not pleased by this phenomenon, reacted strongly in June 2023. Her bill seeks to counter that. harmful practiceswhile providing an opportunity regulate the use of cryptocurrencies.
Crypto is happening the new Eldorado of money laundering in France, it even surpasses traditional financial sectors in reporting suspicious transactions.
Tracfinthe French watchdog of financial flows, received an record number of reports in 2023reaching almost 190,653 suspected cases, i.e. amazing 15% increase compared to the previous year.
The traditional financial sector is not the only one to blame. Electronic money institutions and digital asset service providers (DASPs) reported increases of 146% and 339% respectively..
Bercy raises the alarm and highlights an alarming trend. THE banks and credit institutions remain the leading providers, but digital service providers are becoming the focus of increasing attention.
In this financial Wild West, where transparency is often as elusive as the desert wind, Bitcoin (BTC) and other cryptocurrencies are emerging as a new big challenge for Tracfin and financial regulatory authorities.
Crypto-delinquency: The bad tricks of the virtual
Tracfin, already spoke in the same tone last year: crypto assets have happened a new El Dorado for delinquentsaccording to its latest 2022 Explosives Report, relayed by Le Figaro.
In this gallery of financial horrors, cryptocurrencies shine at the top of the list, becoming privileged accomplices in sophisticated fraud, from money laundering to jihadist terrorism financing. ” A new vector for terrorist financing », regrets Tracfin and emphasizes theirs role in the secret circles of criminal organizations.
Economy Minister Bruno Le Maire and Public Accounts Minister Thomas Cazenave welcome hard work Tracfinwhich revealed a colossal sum Financial fraud in the amount of 2.1 billion eurosincluding almost 1.5 billion linked to tax, social or customs fraud.
But the alarming numbers don’t end there: compared to 2022, reports of suspicious transactions jumped by 46%, with Tracfin receiving 162,708 reports. In the face of this explosion of financial delinquency, Tracfin announces the consolidation of its resources for the coming years.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.