Do blockchain-based crypto-assets facilitate the laundering of cryptocurrencies?

Abstract

Cryptocurrency has become a hot topic in the financial world; given that its value rose sharply following the 2008 financial crisis, Bitcoin is the convertible virtual currency with the highest market capitalisation, having soared to new record highs. However, despite the success of cryptocurrencies, they have not been adopted by the public authorities in Morocco. Although there are legal and financial restrictions hindering the use of these cryptocurrencies and crypto-asset exchange platforms, known as ‘blockchain’, there are still proponents of illicit alternative investment who use cryptocurrencies for the purposes of corruption, fraud, terrorist financing and money laundering associated with the use of new technologies that guarantee security whilst avoiding the attention of regulatory authorities, hence the question of regulation is beginning to arise. Consequently, very little research has been conducted into the use of cryptocurrencies in the context of money laundering or terrorist financing. An analysis of secondary data provides us with a presumptive certainty that the proceeds of criminal activities can be laundered through various dark web services; it also reveals that there are reputation-based services capable of processing transactions as part of a cash-out strategy (‘Daniel Dupuis, Kimberly Gleason, 2020, p. 4’). Therefore, the aim of this research is to answer the following questions:

How do money launderers use blockchain and cryptocurrencies for money laundering purposes? And how can the use of blockchain and cryptocurrencies for related financial offences be prevented?

Finally, the findings of our research are as follows:

• Criminals and professional money launderers are taking advantage of the rapid growth of cryptocurrencies and the anonymity they provide to facilitate the money laundering process;
• The blockchain is a suitable tool for uncovering fraudulent activities as it records all transactions carried out since its creation and makes it easier for central banks, including the bam, to prevent and detect illegal activities retrospectively.

To address these issues and for methodological reasons, this study will be structured around the following four areas:

• The first area will focus on blockchain as a technological innovation that facilitates cross-border transactions;
• The second area will focus on the regulation of cryptocurrency;
• The third area will outline the process of money laundering via cryptocurrencies;
• The fourth section will outline the regulatory guidelines relating to this new convertible virtual currency.

Keywords: Blockchain; Cryptocurrencies; Financial crime; Money laundering; Central banks.

Received Date: April 21, 2026

Accepted Date: May 12, 2026

Published Date: June 01, 2026

Available Online at: https://www.ijsrisjournal.com/index.php/ojsfiles/article/view/753