Money Laundering via DEXs, Coin Swaps and Bridges

[TomPluz]

I am sure it would be safe to say that money laundering is going to be a big problem that will tend to be increasing in volume and never to soon be diminishing...especially that launderers now have new, better tool they use under their own palms. Bad actors are always ahead in adoption of new technologies in the pursuit of their business...and in many times there is nothing the authorities can do a lot aside from trying to follow them and doing all they can to catch the criminals.

This article explain it all: https://coingeek.com/estinated-4b-laundered-via-dexs-coin-swaps-and-bridges-report/

Surely, the criminals are taking advantage of the availability of DEXs as these platforms are more open to anyone coming from anywhere in the globe...with less strict KYC and even many of them no implementing any.

What do you think can be solutions to the ever increasing money laundering use of the technologies we in the world of cryptocurrency are touting to be the backbone of of the new economy?

[aiviaa485]

Money laundering could have happened before the existence of cryptocurrencies and has happened a long time ago.
Now it has been digitized which is able to provide a simple, easy and safe value for money laundering.
As well as to launder money from Bitcoin you can use the Blender platform and for Ethereum you can use Tornado.
Avoiding money laundering in cryptocurrency is very difficult because DEX also now provides unique features such as Bridge, which can transfer the ERC20 network to Doge in just a few seconds.

[pieppiep]

Until now, I still find it difficult to do that using dollars or fiat because many exchange places ask for their identity first or commonly referred to as KYC, whereas if you do money laundering, you shouldn't need to do KYC.

[sampoerna]

We can't deny that many people use crypto for bad things. One of them is doing money laundering. Cart may be very easy like this because they know that crypto is decentralized and more anonymous. So, most of them prefer to use this. They don't need to do KYC of course.

[MrSpasybo]

Money laundering is a problem of the crypto market, governments are wanting to intervene to regulate. However, I think anonymity is one of the important advantages of blockchain and crypto. The crypto community will protect platforms that support anonymity in the marketplace.
DEXs are where money laundering takes place, we also have projects to track and detect dirty money, like PureFi. I think we will have a trend related to this in the next cycle to perfect DeFi.
CEX itself like Binance is also involved in money laundering problems, it is really difficult for us to control and know about the world of dirty money.

[Ghozrd]

I think that in this case Dex brings a good idea for transparency and security of transactions, before the existence of Dex, money laundering often occurred even though many banks and governments carried out security levels to avoid it, but the perpetrators could still do it with all existing systems.
Dex provides good tracking data to track everything, unlike banks, all transactions cannot be tracked without the approval of the bank due to privacy concerns

[gunhell16]

Almost all countries around the world have money laundering as one of their problems, and even though the government of each country has a solution, exploitative people also have an alternative way to their illegal activities in reality.

So I think that money laundering will never disappear because even though cryptocurrency was created in our era, there are only two types of people, it is the good or the bad, which means that cryptocurrency can be used for good or bad, depending on the intention of the person who wants to enter this industry. Whether you are a government official of a country or not.

[iamwarhawk]

That's why most countries are trying to ban cryptocurrency, so people cannot avoid taxes, these dexes are meant to work like that but people are misusing them, I guess dex make transactions anonymous but dexes are designed to work like that, and things can't be fixed, if dexes try to KYC their users, it is useless to use the crypto as it will then work same like centralized system.