Based on the analysis by FIU Sweden, illicit crypto exchange providers arepredominately individuals that provides unlicensed and illegal services to convert criminal proceedings into cryptocurrencies, or the other way around, cryptocurrency earned from crime into cash or other forms of assets. Criminal proceedings from all types of crimes can be laundered via cryptocurrency, and thecrypto exchange provider is often a sought-after expertise within the criminaleconomy, usually operating with an international reach.Based on their specific characteristics, the crypto exchange providers fit therole of a professional money launderer (PML)1. In order to provide a deeperunderstanding of how these perpetrators operate, FIU Sweden have identifiedfour main profiles of crypto exchange providers with a number of underlyingcharacteristics, that are presented in the report.FIU Sweden assesses illicit crypto currency providers as an emerging threatwithin money laundering and other severe crimes, and are considered to playa crucial role for the expansion of organized crime. Therefore, a range ofmeasures involving supervision, monitoring and law enforcement are outlined.One important conclusion is that measures targeting PMLs, such as crypto exchange providers, tend to have a greater impact than measures against criminals that solely conduct their own money laundering, as they often providetheir services to more than one person. If such functions are disrupted, the stability of their entire criminal system can be affected......
