In its latest Economic and Financial Research Report No. 893, the Bank of Italy (Banca d’Italia) classified Bitcoin peer-to-peer (P2P) services as “Crime-as-a-Service”, citing their suspected role in facilitating money laundering activities.
Titled “Money Laundering and Blockchain: Can You Follow Their Footsteps in the Crypto World?” the report sheds light on platforms that enable Bitcoin trading without requiring Know Your Customer (KYC) verification. According to the bank, these services create opportunities for criminals to conceal the origins of illicit funds and complicate law enforcement efforts to track transactions.
The report notes that such platforms often operate in jurisdictions with weak anti-money laundering (AML) regulations or in countries designated as high-risk by the Financial Action Task Force (FATF). The bank argues that this lack of oversight allows bad actors to exploit gaps in the global financial system.
One interesting aspect of the report is that it mentions events such as “Satoshi Spritz,” where people gather to exchange Bitcoin for goods or fiat currency. While these gatherings are typically organized by the Bitcoin community to promote cryptocurrency education and adoption, the Bank warns that they can also be used for illicit purposes, including money laundering.
To combat these risks, the Bank of Italy has called for stricter regulatory measures and cites the importance of implementing robust KYC and AML protocols.
*This is not investment advice.
