Michal Gromek, Co-Chair of the Digital Asset Task Force, a committee of the Global Coalition to Combat U.S. Financial Crime. bitcoin as cryptocurrency He said his units could be “easily tracked”.
“Those who transact on the Bitcoin Blockchain can be tracked”
According to Gromek, criminals cannot easily escape law enforcement:
“It is not right to transact on the blockchain and feel that you will run away and go unpunished. Most of the suspects can be easily traced.”
Gromek said that coin exchanges are often subject to KYC (Know Your Customer) and anti-money laundering regulations. This makes it easier to track down criminals:
“A financial action task force is in place to ensure that crypto brokers globally are subject to regulation.
When you send money to another wallet and then to a sanctioned asset, it can still be seen and reported on the blockchain.”
Gromek spoke at the Future Blockchain Summit in Dubai.
Gromek said it was “not very wise” to use “pseudo-anonymous” cryptocurrencies like Bitcoin or Ethereum to conduct illegal transactions:
“According to reports, illegal activities on the blockchain account for roughly 0.15 percent of all transactions. It is unwise to transact on the blockchain with pseudo-anonymous currencies.”
Because the blockchain stores data on all transactions and wallet addresses, police can use this data to track down criminals. “You just type in different cryptocurrency addresses and you can see how transactions are flowing,” Gromek said.
“Cold Wallets and Privacy Coins Can Also Be Tracked”
Gromek said that even offline cold wallets are not exempt from surveillance because cold wallet crypto holders who want to use their funds will eventually need a hot wallet.
Gromek said that to prevent money from being stolen by a crypto scammer, investors “should choose partners that operate in a safe zone and work with a good regulator.”
However, he stressed that there is always a “risk” when investing in new products.
Gromek also said that even so-called privacy coins like Monero can be tracked by law enforcement:
“There are also tools we can use for privacy coins, and they are used to identify suspects who have committed certain crimes.”
*Not investment advice.
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