Article by Joseph Cartwright and photo by Pixabay
A new report by Bloomberg has revealed that traditional banks are abused by money launderers far more frequently than cryptocurrency platforms.
Bloomberg note that transactions involving money from drugs and other crime accounts for an enormous $2 trillion a year.
According to the Wall Street Journal, criminals laundering money through cryptocurrency exchanges managed around $90 million over the course of two years – 0.0045% of the $2 trillion reportedly laundered via traditional banks every year.
This suggests that contrary to the claims of some, that cryptocurrency is only used by criminals to launder money, traditional banks are far more affected by criminal activities.
One possible explanation for this is that cryptocurrency transactions can be tracked more easily than traditional banking transfers, making it easier to follow the money.