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Cryptoknowmics 2022-04-21 17:30:49

Prevalence of Money Laundering Between Banking Sector and the Crypto Industry

Money laundering constitutes the injection of money or digital assets acquired fraudulently into circulation for use in legitimate trading activities. Traditionally, money launders target getting their money to go through banking institutions, after which it becomes part of the economy. Blockchain networks are also prone to money laundering despite the measures to prevent fraudulent crypto transactions. However, the prevalence of vice in the banking sector is higher than its level on crypto platforms. The features of blockchain technology help keep the instances of crypto fraud at a low rate, which is not achievable by the banking sector. The banking industry relies on laws that punish money laundering, while crypto security features safeguard their networks. There are points to compare and explain the prevalence of money laundering in both industries. More Transparency in the Crypto Industry The basic structure of cryptocurrencies is the addition of a bloc of every transaction completed onto a chain accessible as a public ledger. Every crypto token generated history is traceable; thus easy to confirm the validity of all trades undertaken and the resulting coin transfers. The banking industry is vulnerable to money whose genesis is unknown, thus exposing the economy to higher instances of money laundering. The need for majority consensus is another element that enhances transparent trade over crypto networks. The independent n...

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