- The region of Latin America is witnessing a different perspective on cryptocurrency.
- Cryptocurrencies were mostly used in money laundering in Latin America.
- The Crypto exchange and companies in Latin America do not know most of the customers.
The influence of cryptocurrency and Blockchain is widely expected to bring positive changes to one’s nation. The region of Latin America is witnessing a different perspective on cryptocurrency.
A study conducted by IntSights depicted that cryptocurrencies were mostly used in money laundering in Latin America, especially Bitcoin, given its advantage of privacy and non-traceability on its network.
Previously it would be a certain group or individual on the internet or dark web utilizing the opportunity for money laundering which was widespread on the globe. But this is a surprise that the whole nation of Latin America is witnessing Money Laundering on a high level using Bitcoin and other decentralized cryptos.
The detailed investigation by the media company IntSight shared that the Crypto exchange and companies in Latin America do not know most of the customers or the users on the platform or have not collected and stored personal data of the users engaging on the platform.
The companies have also not implemented global rules made by international organizations and legal governing bodies to combat the illegal use of cryptocurrencies on exchanges such as money laundering.
In recent time the investments on the cryptocurrency in the Latin American region has seen a surge while the scammers and money launderers continue to do transactions with cryptocurrencies exchange and ATMs.
Previously many of the cryptocurrency exchange firm heads have been arrested for facilitating the illegal activities. However, there has been no implementation of any security cover on these issues whatsoever by the exchange governing bodies and financial management.
This is the main drawback of the Bitcoin and other decentralized altcoins which can be easily manipulated in the market and can be hacked without notice if an individual or an exchange company does not implement proper guidelines and security measures.
This also falls as the main reason why the government of nations is not fully utilizing the cryptocurrency to replace the age-old traditional currencies while only Blockchain technology is favored.