The new lures of financial delinquency

Cryptocurrencies, often touted for their potential for financial emancipation, are sometimes misused for malicious purposes, thus facilitating money laundering. This pernicious use of blockchain technology has sparked a strong reaction, particularly after the recent TracFin report, which highlights the involvement of cryptos in suspicious financial transactions in France.

Cryptocurrencies: New French Wild West of money laundering

Historically, the presence of cryptocurrencies in money laundering cases arouses great concern among our leaders. Elizabeth Warren, the Democratic senator from Massachusetts, in no way delighted by the phenomenon, reacted vigorously in June 2023. Her bill aims to counter this harmful practicewhile providing an opportunity to regulate the use of cryptocurrencies.

Crypto becomes the new Eldorado of money laundering in France, even surpassing traditional financial sectors in reporting suspicious transactions.

Tracfinthe French watchdog of financial flows, received an record number of reports in 2023reaching nearly 190,653 suspected cases, i.e. a spectacular increase of 15% compared to the previous year.

It is not just the traditional financial sector that is at fault. Electronic money institutions and digital asset service providers (DASPs) reported a surge of 146% and 339% respectively.

Bercy sounds the alarm, highlighting an alarming trend. THE banks and credit institutions remain the top filers, but digital service providers are becoming a focus of growing attention.

In this financial Wild West, where transparency is often as elusive as the desert wind, bitcoin (BTC) and other cryptocurrencies are emerging as a new major challenge for Tracfin and financial regulatory authorities.

Crypto-delinquency: The bad tricks of the virtual

Tracfin, already spoke in the same tone last year: crypto-assets have become the new El Dorado for delinquentsaccording to its latest explosive report for the year 2022 relayed by Le Figaro.

In this gallery of financial horrors, cryptos shine at the top of the list, becoming the privileged accomplices of sophisticated frauds, from money laundering to the financing of jihadist terrorism. “ A new vector for financing terrorism », deplores Tracfin, emphasizing their role in the clandestine circuits of criminal organizations.

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The Minister of the Economy, Bruno Le Maire, and the Minister of Public Accounts, Thomas Cazenave, welcome the hard work of Tracfinwhich revealed a colossal sum of 2.1 billion euros in financial fraudincluding nearly 1.5 billion linked to tax, social security or customs fraud.

But the alarming figures do not stop there: compared to 2022, suspicious transaction reports jumped by 46%, with 162,708 reports received by Tracfin. Faced with this explosion in financial delinquency, Tracfin announces a consolidation of its resources for the years to come.

Mikaia A.

The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it