Expert views regarding the potential for cryptocurrencies and blockchain technologies in facilitating and deterring money laundering

Abstract

The concept of cryptocurrency, blockchain technology and money laundering is relatively new yet imperative to discuss. Cryptocurrency operates on decentralized blockchain technology featuring over 10,000 different cryptocurrencies that are currently in global circulation. A blockchain may be regarded as a decentralized database which records all transactions made upon it. The primary danger associated with money laundering through cryptocurrency lies in the underlying blockchain technology it is based upon. Interviews were conducted with professionals with a variety of experience in cryptocurrency, blockchain technology, money laundering and the laws and regulations surrounding these aspects. The information provided by the interviewees allowed the research to benefit from the evaluation and assessment of the risks involved with money laundering facilitated through cryptocurrency and blockchain technology. The support of the professionals in Malta is critically valuable in combatting money laundering committed through this technology and provides insights as to how investigation of money laundering is conducted and the challenges this novel technology presents. The findings included how new emerging technology along with features of privacy in cryptocurrency and blockchain technology makes investigating money laundering difficult. Furthermore, it discussed how training and collaboration between relevant professionals is of utmost importance in combatting money laundering and that verifying the identity of individuals on a blockchain is crucial to investigations. Through this research, it was discovered that money laundering is viable through cryptocurrency and blockchain technology and presents a heightened risk of its occurrence.