That is why the federal police warns against misuse of cryptocurrencies

Cryptocurrencies are being misused for illegal purposes ranging from theft and fraud to transnational crimes such as money laundering and terrorist financing, the Federal Police Office (Fedpol) said on Wednesday.

The risks of criminal misuse of crypto technology have increased significantly due to its integration into conventional payment platformswrites Fedpol in response to a report by the Coordination Group on Combating Money Laundering and the Financing of Terrorism (KGGT).

Increase in reports of suspicious activity

In Switzerland, more and more financial intermediaries are offering services with so-called Virtual assets bee. According to Fedpol, the boundaries between the traditional financial sector and cryptocurrencies are becoming increasingly blurred as these virtual assets are increasingly integrated into traditional payment platforms.

In recent years, financial intermediaries in Switzerland have increasingly identified suspicious transactions linked to money laundering and terrorist financing.

This has led to a sharp increase in reports of suspicious activity involving virtual assets to Fedpol’s Money Laundering Reporting Office (MROS). In 2022, almost 14 percent of all suspicious activity reports involved virtual assets. The extent of damage caused by misuse of virtual assets has increased sharply in Switzerland and amounted to at least a double-digit million in 2022, according to Fedpol.

The KGGT report also suggests measures to reduce risks. Among other things, the data and knowledge level and reporting behavior of financial intermediaries in the virtual assets sector should be improved and proactively promoted. Switzerland must also strengthen international cooperation.

Sources

(dsc/sda)