The United States criticizes the adoption of Bitcoin as legal tender by El Salvador and its regulatory framework on it. They also believe that a growing number of criminals use crypto assets to launder money in Spain.
The US Department of State assessed some Spanish-speaking countries whose laws and authorities allegedly allow money laundering with cryptocurrencies.
Argentines Use Cryptocurrencies to Evade Taxes
The report from the US government agency states that Argentina does not ban or regulate cryptocurrencies like Bitcoin (BTC) firmly. They point out that most existing regulations relate to fiscal information and regimes.
The United States said that Argentine citizens adopted cryptocurrencies expecting to evade taxes and have increased their use. In 2021, the Central Bank and the Securities Commission of Argentina warned about the risks of digital assets.
Colombian Institutions Need to Understand Cryptocurrency Transactions Better
Although Colombia has a rigorous money laundering detection regime, the US State Department believes not all those systems are aligned with the best risk management-based practices.
The Colombian authorities confirmed that criminal groups increasingly use cryptocurrencies to send drug proceeds to Colombia. However, the institutions of that South American country do not understand virtual financial transactions much.
The US Believes the Salvadoran Adoption of Bitcoin Was Too Hasty
The United States has heavily criticized El Salvador following its adoption of Bitcoin as legal tender on September 7th.
The US authorities believe the enactment of the Bitcoin Law happened too hastily. They consider that the Central American government should have developed further regulations to prevent money laundering and terrorism financing.
Peruvian Criminals Move Part of their Illicit Funds through Cryptocurrencies
The US Department of State stated that Peru had faced challenges in enforcing and implementing its anti-money laundering regime. In that regard, they said that part of the existing illicit funds in Peru move through cryptocurrencies.
The government agency indicated that cryptocurrency-related financial technology is growing in Peru. The Financial Intelligence Unit of the Andean country published a risk analysis of Bitcoin and other cryptocurrencies in 2021.
There Is Illegal Cryptocurrency Mining in Venezuela
The United States said that Venezuela distinguishes itself by its rampant illicit financial activity and endemic public corruption.
They consider Venezuela lacks government action against corruption, which favors money laundering and financial crimes with cryptocurrencies.
Criminals Increasingly Launder Money with cryptocurrencies in Spain
The US government agency recognized that Spain proactively identifies, assesses, and understands its money laundering vulnerabilities and works to reduce the risks.
They highlighted that criminals in Spain are increasingly using cryptocurrencies to launder their transactions. They also invest their Illicit profits in real estate, services, communications, cars, works of art, and finance.
More Illicit Activities Involve Fiat Money Than Bitcoin
A report from Chainalysis indicates that criminals have laundered more than USD 33,000 million worth of cryptocurrencies since 2017. That figure is insignificant compared to generalized data on money laundering with fiat.
According to the UN, criminals launder between USD 800 billion and USD 2 trillion with fiat money like US dollars and euros every year. That is equivalent to about 5% of global gross domestic product (GDP).
The international organization also estimated money laundering represented 0.05% of the volume of cryptocurrency transactions during 2021.
By Alexander Salazar
