Ever since Bitcoin first became a mainstream commodity, those on the anti-Bitcoin bandwagon have been quick to label the cryptocurrency as a hotbed for money laundering. Those that already have an insight into Bitcoin’s security measures will understand that such money laundering claims are nothing more than a case of clutching at straws by critics. Now, through the latest report from Elliptic, a well-regarded Bitcoin forensics company, and FDD, a leading Bitcoin analysis team, the data suggests that fewer than 1% of total Bitcoin transactions have money-laundering implications.
Bitcoin doubters are on the back foot
The whole purpose of the report was to help analyze the danger of money laundering related to Bitcoin use, along with the related flow of funds. The data it has revealed will certainly put Bitcoin doubters on the back foot, as it proves that Bitcoin as a money laundering tool is nowhere near being the major issue that some have claimed. The key takeaway statement from the report reads, “The amount of observed Bitcoin laundering is small and dark net marketplaces such as Silk Road and, later, AlphaBay are generally the source of almost all of the illicit Bitcoins laundered through conversion services.”
Much closer to home
What’s interesting is that despite accusations that Bitcoin had become a tool of crime in both North America and the Far East, the report found it to be otherwise. The report reveals that the majority of illicit Bitcoin transactions actually take place in Europe. The figure is actually 5x higher in Europe than it is in North America, which – once again – quashes another Bitcoin myth related to supposed illicit use.
Calls for further anti-money laundering measures
Money laundering isn’t exactly a problem that Bitcoin is facing, at least not on a major scale anyway. However, this hasn’t stopped the report from addressing the measures required to stamp out what little money laundering activity that does take place. The report derives that the only effective way to control and eliminate money-laundering transactions is through strict anti-money laundering (AML) measures.
Putting the Bitcoin money laundering myth to bed
It’s been a long-touted myth that Bitcoin is linked to all sorts of criminal activity, but this report goes a long way into putting that myth to bed. It’s now easy to prove that Bitcoin is a green and “clean” currency, with its hardline on illicit use clearly helping the cryptocurrency in its case for legitimacy.