A new report recently released by the Hong Kong Financial Services and Treasury (FSTB) on terrorist financing and money laundering shows cryptocurrencies are less used in organized crime contrary to popular belief among regulators.
This report comes at a very convenient time for the FSTB when many are wondering if the city is doing enough to combat financial crimes chiefly those involving cryptocurrencies. With the report the FDTB basically tells itself not to investigate organized crime. The city has witnessed the explosion of suspicious transactions in the past six years while the number of convictions has gone down.
Businesses that are based in Hong Kong have also complained that they are being denied financial services on a large scale by banks as they continue to overreact to fears of money laundry. The cryptocurrency community in the city has been the hardest hit.
The Hong Kong government is committed to being one of the freest economies and true to this, it has ensured it maintains its stance of having no capital control regimes. If all nations were to adopt such a philosophy, then cryptocurrencies would flourish. The Hong Kong policy is a paradise for all those who think cryptocurrencies are nothing less then a laundry ing money device.
The Hong Kong police does not believe cryptocurrencies pose a money laundering risk. That’s great news. https://t.co/ZEVKSX40a2
— Leo Weese 獅 草地 (@LeoAW) May 1, 2018
The Hong Kong Police Force says that it doesn’t see any apparent sign of organized crime or money laundering/terrorist funding when it comes to cryptocurrencies, but, this is not to mean they are flawless, HKPF mentions that they have been involved in Ponzi schemes.
Since the monitoring of cryptocurrency crimes in the city began in 2013, there have been 167 Bitcoin-related reports. Many though involve ransomware, including WannaCry. There are no drug or smuggling offenses among those crimes and the police consider their risk to be low.
This report that conveniently shows cryptocurrencies are less used in organized crime is contrary to what many financial institutions and governments would like you to believe as they spew fears born out of ignorance. It’s also welcome news to the crypto community that has endured a tough first quarter in 2018 from regulators around the world.