With the emergence of Cryptocurrency, Blockchain technology and the creation of altcoins, there is still another issue countries are plagued with. This has to do with the money laundering problem.
Currently, there is a tremendously high increase of suspected money laundering that has been connected to Cryptocurrencies. The issue has been reported to the police.
And, according to the National Police Agency of Japan, more than seven thousand cases have been reported over time.
As shocking as it is, the money laundering issue reported earlier were about six hundred and sixty-nine cases, and it suddenly increased more than ten folds. This increase occurred between a short time frame from April to December of the year 2017.
In 2027, it was compulsory for Cryptocurrency exchange operators to go ahead and report any suspected transactions. These were to be transactions connected to the transferring of illegitimately gained cash.
Money Laundering And Cryptocurrency
According to the Police, Cryptocurrency can be sent to a person instantly and ultimately anonymous. In some cases, the digital currency can be utilized in paying for illegal drugs or in extreme cases, child pornography.
Meanwhile, placed among the roughly 7096 highly suspicious transactions executed, some of the users who had various names and even birth dates all surprisingly had the same identity photo.
For the other users, it showed that they logged into their diverse accounts from outside the country. However, the listed addresses found were all linked to addresses in Japan. As opposed to overseas.
Additionally, all the monetary transactions, 417465 cases linked to suspected laundering of money and other abuses were reported in the year 2018 to the police department. This figure grew higher than the 17422 recorded in 2017.
In the majority of the crimes, banks and other monetary organizations were involved. This made the report to be 346014 overall. Also, credit card companies were involved with reported cases amounting to 15114.
Furthermore, when the reports were analyzed, the NPA gave out details on about 8259 cases handed to investigating authorities. With this, the police took on 1124 cases that were largely connected to fraud.
To disrupt this surging amount of suspicious transactions being executed, NPA has strategized to carry out training for experts in data analysis and also try out AI (Artificial Intelligence technology).
Basically, artificial intelligence will be capable of detecting illegitimate trade. This is afte it is taught to identify patterns connected to money laundering and drug deals.
To Wrap It Up
Generally, Japan has experienced huge computerized currency heists over time; even with the survey in the number of people buying diverse currencies.
In 2014, about forty-eight billion Yuan, i.e., approximately $433 million worth of Bitcoin was stolen from the Mt Gox. Cryptocurrency exchange. However, the exchange is no longer functioning.
In early 2018, 58 billion Yuan worth of virtual currencies were collected from users of NEM’s accounts.
However, in June, the Cryptocurrency regulators known as Financial Services Agency in Japan ordered about six digital currency exchange operators to enhance their internal controls and also take effective measures in curbing money laundering.