Cryptocurrency and the blockchain

Abstract

Chapter 6 delves into the evolving landscape of crypto-assets and provides an introduction to cryptocurrencies, the blockchain and key concepts that underpin the wider crypto-asset ecosystem. These concepts are examined in the context of the guidance issued by FATF, which highlights some of the AML risks and challenges and how they can be mitigated. The chapter will further critique cryptocurrency scams and frauds, evaluate how cryptocurrencies are used to launder money and examine how cryptocurrency and blockchain risks are being considered by the EU, US and UK. The final case study highlights how unregulated peer-to-peer crypto exchanges are high risk for money laundering purposes and considers this in the context of a marijuana business.