A document from the institution labels services that allow buying and selling Bitcoin without identification as “crime-as-a-service,” specifically mentioning Satoshi Spritz events.
“Money launderers particularly target entities located in countries considered high-risk by FATF and/or lacking anti-money laundering legislation, as well as those authorized in cooperative jurisdictions that fail to fully implement regulations.”
This is according to a new document from the Bank of Italy outlining the techniques used by individuals seeking to obscure the origins of illicit funds. Money launderers would specifically seek platforms that operate without conducting Know Your Customer (KYC) processes, making it more challenging for regulatory authorities and law enforcement to identify users.
In this context, the Bank of Italy targets those services it defines as “crime-as-a-service.” One example cited is the website kycnot.me, which provides an updated list of P2P platforms operating without KYC checks.
Within the realm of peer-to-peer transactions, the Bank of Italy also references “Satoshi Spritz” events—public gatherings where participants can exchange Bitcoin for goods, services, or fiat currency. In reality, the Satoshi Spritz initiative stems from the voluntary efforts of the community, with the primary goal of educating and bringing together enthusiasts in the field.
Money laundering techniques
The report highlights how blockchain technology, despite its inherent transparency, is not immune to illicit activities. Cryptocurrency transactions, immutably recorded on public ledgers, rely on pseudonymity, meaning that an address cannot be directly linked to an individual’s identity without external verification.
According to the institution this pseudonymity would be exploited by money launderers to disguise the origins of illicit proceeds and evade traceability. Beyond using P2P services without KYC, the report outlines more advanced techniques, including:
- Mixers and tumblers, which combine funds from multiple users to obscure ownership and make tracing more difficult.
- Chain-hopping, transferring cryptocurrencies across different blockchains using smart contracts or cross-chain bridges to complicate tracking.
- Anonymous wallets, which include features to hide IP addresses and sever links between different transactions.
