From email scams to ransomware, cybercrime can take many forms. In recent years, cryptocurrency has become the favored detergent for criminals to launder money. Last year, it was reported that £4bn ($5.2bn) had been laundered through cryptocurrencies in Europe alone. As a result, there has been a call from governments around the globe to introduce anti-money laundering regulations for cryptocurrencies.As money laundering cases continue to occur, investors are increasingly weary of investing their money into the crypto market. In recent months, the market valuation of cryptocurrencies has dropped an astonishing
75 per cent

. For this to change, regulations must be put in place to prevent cybercriminals from laundering money through the crypto market.With the rise in globalization, cryptocurrencies also became attractive thanks to their ability to easily carry millions of pounds across borders without detection. Crypto transactions do not require real names, so it’s easy for a criminal to remain unidentified as they move and use crypto.
The European Banking Authority (EBA) explained

that crypto assets often fall outside the scope of the EU financial regulations, so it’s hard to build context around individual transactions.

With the ever-growing popularity of peer-to-peer markets like Silk Road and AlphaBay, cybercriminals have been buying and selling virtual currencies whilst remaining anonymous. Without being about to track the source to the ill-gotten gains, governments and law enforcement agencies cannot possibly prevent this activity. We have also seen peer-to-peer platforms such as Uber and Airbnb exploited by cybercriminals. Hidden amongst a wealth of honest transactions, innovative criminals are able to make a profit by creating fake riders and drivers, while real drivers can tap other technologies like fake GPS apps to bump up fares.Why are money launderers using cryptocurrencies?

Cryptocurrencies have inherently low levels of regulation and are not governed by a central authority, meaning the transactions can’t be closely monitored. This makes them a haven for criminal activity around the globe.
reference: https://www.google.com/amp/s/www.forbes.com/sites/vishalmarria/2019/02/04/how-cryptocurrencies-are-empowering-cybercriminals/amp/