The Swedish Police and Financial Intelligence Unit released a report identifying unregulated cryptocurrency exchanges as professional money launderers (PMLs).
Investigation and Findings
The Financial Intelligence Unit claimed that these exchanges are connected to criminal organizations and help systematically launder funds for various individuals and criminal networks. "FIU Sweden identifies unregulated cryptocurrency providers as a growing threat in money laundering operations and a key element for organized crime to sustain and grow their illicit markets," the report read.
Types of Exchanges
The FIU's analysis identified four distinct types of professional money launderers based on their operational traits: node exchange providers, hawala exchange providers, asset exchange providers, and platform exchange providers.
Measures and Further Actions
The report urged law enforcement to take a more active role on cryptocurrency trading platforms to combat illegal activities. However, authorities acknowledged the importance of licensed and legitimate cryptocurrency trading platforms in the fight against money laundering, urging these platforms to actively monitor suspicious user activity and to take necessary actions, such as halting transactions and offboarding clients when necessary. Meanwhile, Sweden's ongoing crackdown on illegal cryptocurrency activities has recently shifted its focus to the country's Bitcoin mining sector. Following a government investigation, Swedish crypto miners now owe over $90 million in taxes due to four years of misappropriations.
These measures show that Sweden is taking its fight against illicit use of cryptocurrencies seriously, continuing to tighten regulations and scrutiny in both exchange and mining sectors.
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