For many years the mainstream media has hyped up crypto negativity, with the main argument being that Bitcoin and crypto in general can be used by terrorists, drug dealers, and criminals for money laundering. Unfortunately, this smear campaign has been quite successful, and crypto regulations have made it extremely difficult to start a crypto business or to even trade crypto.
However, it seems the argument that crypto is a money laundering haven was baseless in the end. Buzzfeed has leaked a trove of documents called the ‘FinCEN Files’, and it reveals that major banks worldwide have participated in $2 trillion of money laundering between 1999 and 2017, which is certainly far more money then has ever been laundered via crypto.
Some of the biggest banks in the world have been implicated for massive money laundering, including JPMorgan Chase, HSBC, Standard Chartered, Deutsche Bank, Bank of New York Mellon, Bank of America, and American Express.
In fact, the list of banks that have been moving money for criminals is so comprehensive that it suggests that this is a systematic problem that involves all banks, and probably no bank is innocent.
To be specific instead of just using the vague term ‘criminals’, the FinCEN Files link these major banks to money from drug cartels, mafias, corrupt leaders, and terrorist groups.
What makes this even worse is that the government was apparently aware of this, since this data was collected by the government after all, but the government did not disclose the data, and it took a leak from Buzzfeed to make this info public.
Zooming out, this is a major story, and there are many stories within this story, and a whole book could be written on the unimaginable amounts of money being laundered by major banks.
This firmly proves that all forms of money, and all forms of financial instruments, can and will be used for money laundering, and it is unfair for the media, banks, and government to smear crypto as a money laundering haven, when in fact far more money laundering has been occurring in the traditional finance sector.
Considering this, perhaps regulators can lay off on the crypto space, and instead focus on regulating banks, since clearly banks have a much bigger money laundering problem, which makes sense since most of the money in the world moves through banks.