A Study of Blockchain Technology, Bitcoin and other Cryptocurrencies as Means of Money Laundering, Frauds and Scams

Authors

  • Hassan Raza
  • Muhammad Riaz Raza Bahria University

Keywords:

Block chain, Cryptocurrency, Money Laundering, Frauds, Scams, Covid-19, FATF

Abstract

Blockchain Technology, a whole new innovation in the financial technology industry used to transfer monetary value around the world. This growing Blockchain technology is just 10 years old, without regulations and monitoring, the sector is still known as the ‘Wild West’ of the financial industry. With the rise in market capitalization of Cryptocurrencies, there has been increase in money laundering, thefts, hacks, frauds and scams. This innovation of transferring value has proven to be safe haven for criminals and fraudsters to in washing their illicit proceeds. This research is conducted to look into the fact that millions of dollars are lost to cryptocurrency each day just because of the naïve behavior of Investors in investing in cryptocurrency and believing in different scams. In the Covid-19 Pandemic, authorities all over the world have been reserved for the mitigation of health and economic crisis, it has been proposed that this unstable economic and health condition throughout the globe can cause people to suffer with more crypto crimes as people seek basic health necessities through web, avoiding personal contact. This article debates on the Bitcoin concept, Anonymity for transfer of money, challenges to Anti-Money Laundering Authorities and Recommendations of the FATF in response to the risk arise due to large scale adoption of this new innovation.

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Published

2021-03-25

How to Cite

Hassan Raza, & Raza, M. R. . (2021). A Study of Blockchain Technology, Bitcoin and other Cryptocurrencies as Means of Money Laundering, Frauds and Scams . Global Media and Social Sciences Research Journal (GMSSRJ), 2(1), 73-84. Retrieved from http://gmssrj.com/index.php/main/article/view/45