The Fed believes that 50% of Bitcoin transactions are associated with illegal activities

US Fed Official Says 50% of Bitcoin Transactions Associated With Illegal

The Fed believes that 50% of Bitcoin transactions are associated with illegal activities

Member of the Board of Governors of the US Federal Reserve System Lael Brainard said that a quarter of Bitcoin users and half of the transactions with his participation are associated with criminal activity.

Speaking at the ECB colloquium in Frankfurt, she cited various studies according to which bitcoin is still in high demand in the criminal world and is an attractive asset for cybercriminals..

In particular, Lael Brainard pointed out that only a third of the 120 most popular crypto exchanges have implemented AML / CFT mechanisms and require identification to withdraw or deposit funds..

This situation worries the representative of the Federal Reserve, since according to a study by the University of Oxford, 50% of all Bitcoin transactions in one way or another violate the law, and 25% all users are associated with illegal activities. Although she did not mention that anyone can own an unlimited number of addresses.

The Fed believes that 50% of Bitcoin transactions are associated with illegal activities

Despite Lael Brainard’s examples, many other studies show that criminals have largely stopped using Bitcoin in their transactions due to the ease of tracking the movement of funds, and prefer cash..

text: Ivan Malichenko, photo: Insider

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