The Bank of Italy raised concerns about Bitcoin P2P services as key tools for money laundering in its latest research.
Bitcoin P2P as "Crime-as-a-Service"
In its latest report "Money Laundering and Blockchain: Can You Track the Footprints in the Crypto World?", the Bank of Italy highlights platforms such as kycnot.me enabling users to trade Bitcoin without customer identity verification. These platforms facilitate Bitcoin trading, making it difficult for law enforcement to track the source of funds. Events like “Satoshi Spritz,” where individuals exchange Bitcoin for goods or fiat currency, are also under scrutiny.
How Money Launderers Operate
Even though blockchain technology provides a public record of all transactions, the identity of the person behind each address remains hidden. The Bank of Italy outlines several common methods used by money launderers:
- **Mixers and Tumblers:** These tools blend funds from different users, making it challenging to trace their origin.
- **Chain-Hopping:** This involves moving funds across different blockchains to confuse trackers.
- **Anonymous Wallets:** Hide users’ IP addresses and disconnect transaction links.
Call for Strict Regulations
The Bank of Italy emphasizes the need for stricter rules to combat these issues. By enforcing rigorous KYC and anti-money laundering (AML) measures, authorities can make it harder for criminals to misuse Bitcoin and other cryptocurrencies.
The Bank of Italy calls for stronger regulations to protect the financial system from abuses via Bitcoin and other cryptocurrencies.
