How increasing technology in Cryptocurrency is a hurdle for AML officials

The evolution of technology takes one step further every day, and this can be observed in various fields. With the popularity of the cryptocurrency domain steadily increasing, developers are coming up with new concepts periodically.

Why is Cryptocurrency so popular?

With the popularity of Cryptocurrency increasing, it's not surprising that developers are finding new ways to make it more attractive to appeal to its users. The main point of the appeal of cryptocurrency is that it uses cryptography to keep users information hidden and secure. Cryptocurrency exists as its own entity, without any government involvement. This, along with the added layer of anonymity it provides makes it the perfect medium for making quick and inconspicuous transactions.

People seem to enjoy investing in cryptocurrency for high returns. Cryptocurrency is cited as a reliable long-term investment, with no risk of inflation due to government interference. Though it is a good investment in the long run, the wild fluctuations cryptocurrency goes through in a single day are also a high-risk thrill to investors, unlike stocks where changes in value are gradual.

Increase of Crypto in illicit activities

However, as the popularity of cryptocurrency increases, so does its involvement in financial crime. With no regulatory bodies to keep a check on the currency, coins like Bitcoin and Ethereum are gaining traction among money launderers and other criminals.

In many instances, criminals use cryptocurrency as the primary medium of exchange for illicit activities. This includes extremely dangerous activities like human trafficking and drug dealing.

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Posted from my blog with Exxp : https://www.regtechtimes.com/how-increasing-technology-in-cryptocurrency-is-a-hurdle-for-aml-officials/

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