Analysing money laundering risks through the use of cryptocurrencies in online gambling

Abstract

The research study was set out to find out money laundering risks posed by cryptocurrencies within the online gambling industry. The research study initially reviews academic literature that will eventually serve as the backbone for the study. The aforementioned literature helps in describing important key words such as money laundering, cryptocurrencies and online gambling. A qualitative approach was deemed to be the best fit for data collection with regards to this study. Semi-structured interviews with stakeholders and professionals in the Maltese industry were used as tools within a qualitative approach method. These interviews provided the researcher with information considered as both vital and honest for the purpose of the study. With that being said the researcher has been able to determine accurate conclusions showing that crime is and always will be. Findings show a correlation between cryptocurrencies and money laundering. Another conclusion was that it is evident that crypto-payments are better although at the time being this form of payment is still under adopted. Thirdly educating people how cryptocurrencies can be used in a legitimate manner and having a robust regulatory framework as to attract the best investors. Having said that it is being suggested that further studies regarding cryptocurrencies and money laundering should be carried out. It is also being suggested to further analyse the impact of cryptocurrencies on money laundering detection as opposed to cash. Whilst keeping in mind the dynamic nature of technology further suggestion would be to update regulations, technicalities and procedures in Malta.