https://www.botslash.com/en/market/central-crypto-exchanges-remain-key-channels-for-money-laundering-en/

Centralized and well-known cryptocurrency exchanges are often viewed as major gateways for financial transactions, allowing users to easily convert their funds. However, experts warn that these platforms have become the primary sources for money laundering by criminals. Dr. Jan Philipp Fritsche, Managing Director of OX Security, emphasizes that focusing solely on crypto mixers while leaving centralized exchanges unregulated is like closing the windows of a house but leaving the door open. Central exchanges facilitate most cryptocurrency trading and usually maintain direct links with fiat currencies, making them convenient avenues for criminals to legitimize illicit earnings. Despite increased regulatory oversight in various countries, monitoring of centralized exchanges remains inadequate, enabling ongoing misuse. Global organizations and governments are intensifying scrutiny of crypto mixers, which obscure transactions, but without stringent regulations on centralized exchanges, these efforts may fall short. Financial experts advocate for an integrated strategy involving enhanced supervision of centralized exchanges, robust user identity verification, and mandatory reporting of suspicious transactions to curb criminal activities. Failure to improve oversight of central exchanges could lead to a rise in illegal cryptocurrency use, posing risks to the global financial system. Therefore, experts urge lawmakers and regulatory bodies to collaborate at multiple levels to ensure the cryptocurrency sector is secure and transparent.