The Bank of Italy has raised alarms about Bitcoin peer-to-peer (P2P) services, calling them “crime-as-a-service” due to their use in money laundering. The Bank’s research highlights how unregulated platforms are increasingly exploited by criminals to launder money.
Bitcoin P2P services let users trade directly without intermediaries, offering privacy and lower fees. However, they also lack proper identity verification (KYC) and anti-money laundering (AML) measures, making it easier for criminals to hide illegal funds. Techniques like mixers, tumblers, and chain-hopping are used to obscure transaction origins, while anonymous wallets further hide users’ identities.
The Bank of Italy urges stricter regulations to enforce KYC and AML measures, aiming to curb misuse of Bitcoin and cryptocurrencies. It also warns about events like “Satoshi Spritz,” where Bitcoin is exchanged for goods or fiat currency, potentially aiding money laundering.
Sources:
https://coinpedia.org/news/bank-of-italy-exposes-bitcoin-p2p-platforms-as-tools-for-crime/
https://cryptonews.net/news/security/30274965/
https://www.chainalysis.com/blog/2024-crypto-money-laundering/
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