How is money laundered through cryptocurrencies, the main points of the process?

Cryptocurrencies have become a popular financial instrument due to their transparency, speed and independence from banks.

However, their decentralized nature often becomes a reason for money laundering through cryptocurrencies.

Today, there are two most popular options for legalizing illegally obtained funds – transferring cash to cryptocurrencies and legalizing received digital money.

In this article, we'll look at what money laundering is, how cash is converted into cryptocurrency, how cryptocurrencies are transferred to bank accounts, and why filing a tax return is important.

What is money laundering?

Money laundering is the process by which illegal proceeds are converted into funds with legal status.

It includes three stages:

• Placement is the introduction of funds into the financial system, for example, through the purchase of cryptocurrency.
• Layering is the creation of a chain of transactions to hide the origin of money.
• Integration is the use of “purified” funds for legitimate transactions.

The main task of full legalization is to make sure that the funds are not in doubt and taxes are paid on them.

But in practice, I also use partial legalization, in which cryptocurrencies are transferred to bank accounts in loyal countries, without paying any taxes.

Exchange cash through cryptocurrencies

This process is the most complex, time-consuming and expensive, primarily due to the fact that it is quite difficult to legalize large sums without getting involved in obvious crime. But if we are talking about a couple of tens or hundreds of thousands of dollars, then everything is simpler.

The basic principle of transferring illegal cash into cryptocurrencies is in small amounts, ideally up to $1,000 at a time, or with a moderate risk of up to $10,000.

One of the best options for exchanging fiat currencies for crypto remains the rating of exchange offices BestChange.com , where you need to choose what currency you have cash in and what cryptocurrency you want to exchange it for:

Then you select an exchange office and a city in which it will be convenient for you to make an exchange and go to the company’s website. Next, following the instructions on the website, you exchange cash for cryptocurrencies.

Legalization of cryptocurrency

The cryptocurrencies attracted as a result of the exchange can later be withdrawn to your bank account through the same BestChange.ru or you can use the services of cryptocurrency exchanges, while observing the rule of not large amounts.

But in order for the money to be completely legalized, you will need to indicate it in your tax return and pay income tax. Sometimes, to reduce taxes, a private entrepreneur opens, providing services and paying a fixed tax.

Alternatively, you can pay with cryptocurrency for goods and services, in which case you won’t have to pay anything, or buy real estate and record it on the balance sheet of an offshore company, and then transfer it to your name and sell it.

It is through offshore companies and cryptocurrencies that large sums of funds are laundered, but to implement such schemes you will need a specialist in this field.

It is advisable to carry out all manipulations in countries that are loyal to cryptocurrencies, where the indication of crypto-wallets is not required.  

There are quite a large number of options for money laundering through cryptocurrencies, and their choice depends on the size of the amount.

But in any case, most of the schemes are considered illegal and if the transactions attract the attention of the competent authorities, you may lose your money.