At some point over the past 10 years, most readers will have heard of Bitcoin, even if they have not directly encountered it. Bitcoin is the most commonly-known and widely-used cryptocurrency , but others include Ethereum, Litecoin, and Dogecoin.
One of the major selling points of crypto is the decentralised and unregulated nature of transactions. However, the recentshows that some regulation may be necessary in order to protect ordinary members of society. The move is to be welcomed as it will serve to ensure that crypto service providers are held to strict standards and that users of their services can transact in a manner which protects their interest and have recourse to law should they require it.
But crimes other than tax evasion require SARS, law enforcement, and players from the private sector to collaborate on a strategy to prevent, detect, combat, and prosecute crimes in which crypto is used, particularly crimes in which crypto is used in the commission of the crime, such as money laundering.
The steps for laundering funds using crypto are structurally similar to those for money laundering using regular currency. The major difference is that money received from illicit activities needs to be first converted to crypto. Or the initial payment for illegal conduct or goods can be made in crypto.
As of the start of 2023, the criminal trial of Lichtenstein and Morgan has not yet begun. If the prosecution is successful, it may set a global precedent for investigating and prosecuting this type of crime.