Large banks have been caught in a money laundering scandal. Criminals were allowed to launder money between years 1999 – 2017 to the amount of almost $2 trillion through these banks.
Let’s take a look at what this could mean for cryptocurrencies and what we should learn from this situation.
18 years of laundering money
According to the leaked FinCEN files, the world’s largest banks like HSBC, JPMorgan Chase and Deutsche Bank allowed criminals to launder money equalling to around $2 trillion. This laundering scheme was allowed to happen between 1999 – 2017. This is a big scandal and it can have a massive impact on the trustworthiness of these banks. According to the ICIJ analysis, $1.3 trillion comes from the Deutsche Bank.
Banks didn’t carry out the basic security and AML procedures like verifying the residence of companies who opened new accounts with those banks.
This is yet another case of big banks breaking people’s trust. It has happened many times before and it’s happening again. The question is, do we have a way out? Can we do something to save our money?
Are cryptocurrencies the answer?
Many people who have lost faith in the centralized banking system have turned to cryptocurrencies to save their wealth. It’s natural that this scandal will probably have a similar impact. Stock prices of these banks are already plummeting, so this could just be the beginning. We will see how this scandal will continue and how many people will realize the current banking system will allow things like laundering money.
A possible future might be people will realize that banks are not trustworthy and in turn, move to adopt cryptocurrencies instead. It would be a large hit for banks and the centralized system. Banks and authorities are now calling for regulating cryptocurrencies, yet they commit crimes within their own walls.