A recent publication by the Bank of Italy (Banca d’Italia) classifies Bitcoin P2P as “Crime-as-a-Service” and criticizes its anonymous function.
In its latest economic and financial research report, the Bank of Italy raised concerns about Bitcoin’s peer-to-peer (P2P) systems, describing them as potential “crime-as-a-service” platforms.
That of the central bank report highlighted the pseudonymous nature of Bitcoin transactions, which they said could help facilitate illegal activities such as money laundering.
However, according to the report, Bitcoin’s P2P services are not inherently criminal. Still, the authors believe that the privacy features present an opportunity for those seeking to conceal illegal financial activities to exploit them.
The Bank of Italy pointed out that the regions were weak Combating money laundering (AML) regulations, such as certain countries identified as high-risk by the Financial Action Task Force (FATF), these platforms are particularly vulnerable to abuse.
The report also noted that the decentralized finance (DeFi) sector poses additional challenges for regulatory oversight. Without intermediaries to enforce AML compliance, DeFi platforms can potentially be abused for illegal purposes.
According to the report, the lack of central control in DeFi makes it difficult to implement traditional regulatory measures and requires new approaches to ensure compliance and prevent abuse.
Greater Concerns About Bitcoin’s Anonymity
The central bank’s perspective is consistent with previous criticism from various global authorities. For example, the Financial Action Task Force expressed concerns about…
