2018Q3 Cryptocurrency Anti-Money Laundering report by ciphertrace

Key Takeaways

  1. 97% of direct criminal bitcoin payments are sent to unregulated exchanges.
  2. 36 times more criminal bitcoin is received by cryptocurrency exchanges in countries
    where AML is either weak or not enforced.
  3. Cryptocurrency money laundering on top exchanges involves a significant amount of
    bitcoin—some 380,000 bitcoins or $2.5 billion at today’s prices.
  4.  In the first three quarters of 2018, $927 million of cryptocurrency was stolen by
    hackers; since the Q2 report, CipherTrace have recorded new reports of $166
    million.
  5. US FinCEN clarified its stance on regulating mixing services and included crypto-to-crypto
    in its definition of money service businesses, MSBs, that are subject to the
    Bank Secrecy Act (BSA) rules. It also enlisted the IRS to examine 100% of
    cryptocurrency MSB transmitters for BSA compliance.
  6. Opportunities to launder cryptocurrencies will be greatly reduced throughout 2019
    and 2020 if cryptocurrency AML regulations are successfully enacted and enforced
    globally.
  7. New cryptocurrency crime threats continue to emerge, including highly targeted
    mass cyber extortion, SIM swapping, and advanced cyberattacks on exchange
    personnel

Source: Ciphertrace Report [pdf]