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Recently, the V dollars have been accused of aiding money launderers. The currency of the game used to buy skins for your avatar seems to be a target for criminal underworld. Fortnite has accumulated enormous success in the last year, yet the indignation for money laundering is nothing compared to what mainstream media often consider cryptocurrencies. This is often one of the main complaints against Bitcoin. However, when you dig a little deeper, money laundering through Bitcoin is more difficult than you think.
If you plan to use a cryptocurrency exchange that allows you to deposit certificates, there is a high probability that KYC has been implemented. This clearly allows the exchange to know who is trading Bitcoin. In addition to this, exchanges now have the software available to analyze the Bitcoin addresses you are sending and receiving from. More than likely, if the addresses are linked to known dark web services, they will freeze your account.
Without these measures, it is unlikely that many cryptocurrency exchanges will work within the existing financial regulation required. Private currencies such as Monero or Zcash are often excluded from major trade due to the risk that exchange can not keep track of addresses. If money were to be recycled also with private currencies, the KYC aspect still provides problems.
Bitcoin, being pseudo-anonymous, allows you to track transactions on the entire blockchain. Therefore, as a tool for money laundering, cryptocurrency is certainly not ideal. The idea that is pushed by the mainstream media does not cut mustard. Naturally, as a new form of money, in the early days, Bitcoin would have been a much more suitable instrument. But with the increase in regulation in the sector, this will become more difficult for criminals.
The other crime problem involving cryptocurrencies is its use as a ransom, which we have extensively dealt with here. This is a much bigger problem within the space at this time that needs to be solved. But today, the problem of money laundering is a non-starter.
