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Cryptocurrencies can make it easy to obscure the source of criminal proceeds and are increasingly becoming the preferred currency because cryptocurrency offers a combination of anonymity, ease of use and the ability to circumvent international borders and regulations, in essence, to launder the ill-gotten proceeds. Examine.

Topic: money laundering and its prevention.

5. Cryptocurrencies can make it easy to obscure the source of criminal proceeds and are increasingly becoming the preferred currency because cryptocurrency offers a combination of anonymity, ease of use and the ability to circumvent international borders and regulations, in essence, to launder the ill-gotten proceeds. Examine. (250 words)

Difficulty level: Moderate

Reference: Insights on India

Why the question:

The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2024 Secure timetable.

Key Demand of the question:

To write about how cryptocurrency has facilitated money laundering and measures needed to prevent it.

Structure of the answer:

Introduction: 

Start by giving context regarding the challenges posed by cryptocurrency.

Body:

First, explain in detail as to how crypto can facilitate money laundering and challenges it poses for the enforcement agencies to tack and analyse it.

Next, write about the measures that are needed to ensure this growing technology is regulated and challenges associated with it are overcome.

Conclusion:

Conclude by summarising.