Cryptoasset exchanges provide essential liquidity to crypto markets –acting as vital gateways between the fiat and crypto-asset ecosystems. Thus, exchanges inevitably feature heavily in crypto asset-related money laundering activity.

1. MONEY LAUNDERING
CRYPTOASSETS
IN
Your Legal & Financial Guide

2. Cryptoasset exchanges provide
essential liquidity to crypto markets –
acting as vital gateways between the
fiat and cryptoasset ecosystems.
Thus, exchanges inevitably feature
heavily in cryptoasset-related money
laundering activity.
01 CRYPTOASSET EXCHANGES
Your Legal & Financial Guide

3. P2P platforms play an important role
in the cryptoasset ecosystem by
enabling cryptoasset users to interact
without the involvement of large,
centralized intermediaries.
02 PEER TO PEER (P2P)
PLATFORMS
Your Legal & Financial Guide

4. Criminals can use the DeFi ecosystem
to launder the proceeds of crime.
Users of Dapps can generally access
these services without having to
provide KYC/CDD information
03 DECENTRALISED FINANCE
(DEFI)
Your Legal & Financial Guide

5. In many jurisdictions, cryptoasset
ATMs remain unregulated – or of
unclear regulatory status. This makes
them an attractive target for
criminals, who use ATMs to convert
large amounts of cash into
cryptoassets.
04 CRYPTOASSET ATM
Your Legal & Financial Guide

6. Many online gambling and gaming
services do not require KYC and CDD
information. Online casinos have
begun to accept cryptoassets from
customers. Similarly, new online
exchanges enable users to swap
digital assets for in-game currencies.
05 CRYPTOASSET GAMBLING
& GAMING SERVICES
Your Legal & Financial Guide

7. Cryptoasset prepaid cards allow
crypto users to purchase real-world
goods and services seamlessly.
Criminals have been trying to take
advantage of the convenience of
cryptoasset prepaid cards to quickly
move dirty funds.
06 CARDS
Your Legal & Financial Guide

8. Mixers play a vital role in cryptoasset
laundering due to their ability to
obscure transaction flows. By
collating and redistributing BTC
among numerous users, these
services break the chain of end-to-
end traceability around transactions
on cryptoasset blockchains.
07 MIXERS & PRIVACY
WALLETS
Your Legal & Financial Guide

9. Tokens can offer certain advantages
to criminals where they are traded on
DEXs that do not require KYC
information.
08 TOKENS & STABLECOINS
Your Legal & Financial Guide

10. The ability to buy and sell digital art
and goods presents new
opportunities for fraud, money
laundering and sanctions evasion.
NFT markets are also characterized by
uneven regulatory oversight.
09 NON-FUNGIBLE TOKENS
(NFTS)
Your Legal & Financial Guide

11. The use of privacy coins for
laundering purposes is also
heightened where the exchanges that
criminals attempt to exploit are
unlicensed and non-compliant.
10 NON-FUNGIBLE TOKENS
(NFTS)
Your Legal & Financial Guide

12. Your Legal & Financial Guide
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Adv. P. M. Mishra
Lawyer & International
Regulatory Expert