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Tuesday, October 31, 2017

Bitcoin Risk of Low In Money Laundering and High Risk For Cybercrime

A recent report has been released by the UK Department of Treasury on monetary policy in the country. The report shows a summary of an analysis of a number of financial topics. The report also reveals the views of the National Criminal Council (NCA), in handling Bitcoin and its use in crime.

Also read: Characteristics of Cloud Mining Ponzi Scam

Regardless of the widespread opinion that Bitcoin is mostly used for money laundering. As Larry Fink, CEO of BlackRock, stated in his perspective that cryptocurrency is a money laundering scheme.

"Bitcoin only shows how much money laundering demand in the world, that's it, it's a money laundering index," Fink said.

Bitcoin Low Risk Money Laundering

A report from the Ministry of Finance of Inggirs indicates that the risk of money laundering is actually relatively low. According to the report: "The NCA has assessed the risk of using digital currency to be used as a relatively low money laundering tool; although the NCA assumes that digital currencies are used for small amounts of money laundering with high volumes, there is little evidence to be used for large amounts of money laundering. "

While the facts show that some money laundering did occur, the report explained that the numbers are low and a small risk to UK criminal bodies.

Bitcoin At Risk Of Criminal Acts

While the risk of money laundering is relatively low, Bitcoin's use for cybercrime is relatively higher, according to the report. First, cryptocurrencies provide a simple way for criminals to demand payment. Second, they facilitate the 'crime-as-a-service' methodology among criminals. Third, they provide money laundering method of cyber crime.

The report concludes that the adoption of digital currencies will result in greater opportunities for crime use. As an example recently where ransomware attacks, BadRabbit that hit Eastern Europe by demanding ransom in the form of Bitcoin from malware-affected computer devices.

The conclusions from the report show: "This risk is expected to grow along with the digital currency into an increasingly viable and popular payment method. As the number of businesses that receive digital currency payments grows, there is an increased risk of criminals using currencies to launder funds without the need to spend non-digital money, or 'fiat'.

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