When cryptocurrency was first revealed to the world and Bitcoin began in 2009, many people saw its only use as being in the black market. Cryptocurrency in its infancy was not taken seriously by the world. When it was just Bitcoin that was around, its value was low and barely anyone understood it.
Nowadays Bitcoin is more prevalent than ever and alongside it, the use in illegal activities. This can be said for any form of currency and its natural growth allowing for criminals to utilise it whether Bitcoin or another cryptocurrency.
Recently, New Zealand police discovered a $5000 cryptocurrency transfer that allowed them to discover a money-laundering scheme related to an illegal drug. After investigating the transfer, an arrest was made following investigation.
Rayon Mohi Williams was the one who allegedly made the transfer although the police were not able to find his digital wallet. Without Williams’ wallet, police are unable to discover exactly how much he possessed or had used in previous transactions.
The New Zealand government has improved its funding towards watching cryptocurrency activities for money laundering. However, without the ability to find a user’s wallet, information will be lost. This means the ability to fine someone of their assets will be severely impacted.
Although crypto trading is bigger than ever and cryptocurrencies like Bitcoin have reached record price values this year– authorities and academics still aren’t too worried these days about more underworld uses for cryptocurrency. Cash is still king when it comes to illegal activity as cryptocurrency is still very much trackable and not as anonymous as it claims.
The New Zealand government has previously launched an inquiry into cryptocurrency that should help in its understanding. With better overall knowledge out there about how cryptocurrency works, stronger law enforcement and regulations should follow.
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