Bitcoin and other cryptocurrencies undoubtedly offer new opportunities for financial transactions. However, they can also be used for purposes of financial crime, such as fraud and money laundering. The absence of central control and the pseudonymous nature of transactions make cryptocurrencies appealing for illicit activities.
What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?
There are plenty of existing regulations, and I don't think we need more of those. I believe that a more reasonable, balanced approach should be put in place. Namely, I find it absurd to demand mandatory KYC from everyone on a crypto exchange, regardless of whether their account has dozens, hundreds, or hundreds of thousands of dollars worth of money. It is important to fight big crime, the sort of activities that result in millions or more of laundered money. These activities should be the primary target, and those moving huge amounts of money should be required to provide a lot of documentation. As for regular users, I think the privacy concerns outweigh the risk of illegal financial activities here. Also, I think the regulations should not focus merely on crypto users and platforms, but should also deal with a big issue of banks laundering billions of dollars. I mean, such cases as Danske Bank are crazy, and all efforts should focus on preventing them.What do you think can be done to mitigate the risk of cryptocurrencies being used for criminal purposes? What measures should be taken?