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Europol: Blockchain can provide independence and security, but lack of supervision has led to a surge in DeFi criminal activity

18/09 17:59
Odaily Planet Daily News Europol recently released the "European Financial and Economic Crime Threat Assessment" report. The report refers to the complexity of financial and economic crime affecting the EU, such as money laundering, corruption, fraud, intellectual property crime and currency counterfeiting, and highlights the importance of collaboration, information sharing and public-private partnerships to effectively combat these criminal activities. The report states that DeFi based on blockchain technology promises greater independence and security. However, the lack of regulation leaves room for economic crime in this area, as criminals store illicit assets on DeFi platforms; highly volatile cryptocurrencies are also targets for fraud schemes and money laundering. NFTs have also seen a surge in popularity, but have also attracted scammers due to their ability to be traded instantly. Given the cross-border transaction characteristics of NFT, it poses significant money laundering risks. Additionally, the Metaverse has been adopted by the financial sector and provides new opportunities for criminals. Cases of fraud and theft have emerged in this area, and there is a potential trend towards the emergence of organized crime. (CryptoPotato)