A man has been apprehended in the Netherlands on suspicion of using bitcoin for money laundering. According to the prosecution, there were ties to dark web business activities. Following a recent statement made public by the Fiscal Information and Investigation Service (FIOD), the 42-year-old man living in the Midden-Groningen municipality was arrested and taken into custody.
The statement further notes that the FIOD’s criminal investigation got underway as a result of information that the suspect had repeatedly utilized Bitcoin ATMs. Bitcoin ATMs resemble ATMs but let you withdraw cryptocurrency.
The individual was found to have been trading vast amounts of bitcoin through exchanges for a long time and to have far more bitcoin in his possession than he could have bought with his present salary. The man’s Veendam home was searched, and the results included the seizure of his cash and computer. The Netherlands’ Public Prosecutor’s Office was in charge of the investigation.
Is Bitcoin being used to launder money?
In October 2021, the FATF, a global group fighting money laundering, completed its regulations for the cryptocurrency sector. The FATF first released this recommendation in 2019, and it called for compliance on a par with what is seen in conventional finance.
Money launderers, however, are largely unaffected by this because, in September, a province in China reported 93 people who were thought to be involved in the practice throughout the region.
The fact that many individuals use Bitcoin and other cryptocurrencies as a means of money laundering is one of the driving causes behind China’s intense opposition to the business. It is generally known that China has a strong stance against cryptocurrencies. In August, WazirX, one of India’s most popular cryptocurrency trading platforms, came under the scrutiny of the Enforcement Directorate (ED), a government agency responsible for overseeing the market.
Enforcement of anti-money laundering laws and cryptocurrencies
For many decades, the U.S. government has required financial institutions to take steps to help detect and prevent financial crimes including money laundering and terrorist financing. Federal law requires financial institutions to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000, identify and assess the risk of customers (Know Your Customer (KYC) rules) and report suspicious activity that might suggest money laundering, tax evasion, or other criminal activities.