Cryptocurrency Laundering Woes: The Gambia in the Crosshairs

The West African nation of The Gambia is facing a growing concern over cryptocurrency laundering due to its lack of regulatory framework for digital currencies. Experts warn that this has created a fertile ground for illicit activities, making the country’s financial system vulnerable to money laundering and other illegal activities.

SafeMoon’s Plans to Launch Operation Phoenix

Despite having no specific laws or regulations governing cryptocurrencies, SafeMoon, an altcoin and blockchain-based digital currency, has announced plans to launch a new project in Gambia called Operation Phoenix. This move has raised concerns among authorities and experts that the country’s financial system could be vulnerable to money laundering and other illegal activities.

Cryptocurrency Safety in Gambia

According to a recent analysis by Cointobuy, Gambia scores a dismal 2.0 out of 10 in terms of cryptocurrency safety. The main factor contributing to this low score is that two Initial Coin Offerings (ICOs) have banned Gambian residents from participating in their crowdfunding ventures. The country ranks 178 out of 249 countries in terms of overall cryptocurrency safety.

Regulatory Uncertainty

The lack of regulatory clarity has led to a gray area for crypto mining in Gambia, with some experts warning that the activity could be subject to laws governing money transmission. In contrast, countries like Israel treat crypto mining as a business and are subject to corporate income tax, while in India and other countries, regulatory uncertainty persists.

FinCEN’s Deeming of Crypto Miners as Money Transmitters

The Financial Crimes Enforcement Network (FinCEN) has deemed crypto miners as money transmitters, making them subject to the same laws that govern traditional financial institutions. However, apart from jurisdictions that have banned cryptocurrency-related activities outright, very few countries prohibit crypto mining.

Gambia’s Regulatory Shortcomings

Gambia’s lack of regulation and oversight has created a perfect storm for cryptocurrency laundering, with experts warning that the country’s financial system could be vulnerable to exploitation by criminals. As the world grapples with the challenges posed by cryptocurrencies, Gambia must take immediate action to address its regulatory shortcomings and prevent the misuse of digital currencies.

Recommendations

• Establish a clear regulatory framework for digital currencies
• Implement measures to prevent money laundering and other illegal activities
• Increase transparency and oversight in the crypto mining industry
• Collaborate with international authorities to share best practices and combat cryptocurrency-related crimes.