Cyptolaundering: Anti-money laundering regulation of virtual currency exchanges

Loading...
Thumbnail Image

Date

2019

Journal Title

Journal ISSN

Volume Title

Publisher

University of Western Cape

Abstract

Ten years on since their invention, virtual currencies are here to stay. However, virtual currencies come with money laundering risks. This paper discusses antimoney laundering regulation for virtual currency intermediaries, by showcasing and comparing regulatory models at the national and international levels. It is found that the anti-money laundering regulation for virtual currencies — more than being merely “nice to have” — carries considerable potential in the fight economic crime. Where financial intermediaries engaged in virtual currencies are required to gather the full spectrum of information needed to identify their customers and the source of funds, virtual currencies become much less attractive to money launderers than traditional fiat money systems. Furthermore, anti-money laundering regulation means that supervisory and investigatory authorities can identify and act against money launderers and other delinquents.

Description

Keywords

Cryptolaundering, Anti-money laundering regulation, Money laundering, Corruption, Virtual currency

Citation

Mbiyavanga, S. (2019). Cyptolaundering: Anti-money laundering regulation of virtual currency exchanges. Journal of Anti-Corruption Law, 3(1), 1-15.