In the Bank VS Bitcoin Match, Bitcoin (BTC) is leading the way! – Cryptocurrencies

Bitcoin (BTC) vs Bank

Like the main previous technological innovations, Bitcoin (BTC) and cryptocurrencies in general despite themselves favor certain illicit activities. In the case of cash, they allow the financing of these activities with relative ease. The fault would fall on the financial institutions which use an inadequate system to trace this kind of suspicious transactions. This is the conclusion CipherTrace made in its report on Best Practices for Monitoring Cryptocurrency Transactions in Banks. Explanations.

Up to 90% of suspicious transactions related to unidentified cryptocurrencies

As stipulated by the regulations of the FinCEN (Financial Crimes Enforcement Network), it is the responsibility of banking institutions ” to identify and report suspicious activity regarding how criminals and other bad actors exploit CVCs for the purposes of money laundering, sanction evasion and other illicit financing “. Despite this, the institution is witnessing a significant increase in reports of suspicious transactions involving convertible virtual currencies (CVC). Since then, CipherTrace calls into question the detection systems put in place by banking institutions.

These are mainly based on lists of cryptocurrency exchanges and other Virtual Asset Service Providers (VASPs) to report cryptocurrency transfer associations. An approach deemed unsuitable by the CipherTrace report which explains the reason. This way to do ” results in many false positives and passes large flows of funds that cannot be discovered by name match search “. It would be so nearly 90% of actual transactions linked to cryptocurrencies that would escape the attention of banking institutions using this approach. The report adds that a typical name-based system can ” miss up to 70% or more of crypto exchanges, and up to 90% of actual transaction volume “.


Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

How do criminals launder cryptos through banks?

A case of crypto-money laundering that a bank could face was illustrated in the report of CipherTrace and involves drug traffickers. To achieve the combination, these first transfer the cryptocurrency resulting from their trade on the black market to the address of a P2P exchanger. The latter will then use his account in a high-risk exchange to convert cryptocurrencies into US dollars. At the end of this first step, the entire amount is transferred to P2P exchanger bank accounts under fictitious trade names.

It then conceals its nature and origin by returning funds converted into USD to the drug trafficker’s fictitious business account. This return to the source takes place in the form of a cashier’s check or wire transfer. CipherTrace points out that many banks would have no idea that these funds are coming from a high-risk exchangee using their current system.


Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Several other examples of crypto laundering through banking institutions can be seen in the CipherTrace report. The latter also offers suitable tools to better identify these suspicious transactions and shares the indicators that banks should follow. However, as it has already been demonstrated, relying on cryptocurrencies to carry out illicit activities can be a dangerous choice.


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