Are Digital Currencies a Global Financial Loophole?
Cryptocurrencies present a paradox in the global financial system. While they offer efficiency, decentralization, and financial inclusion, they also pose significant challenges to tax compliance and anti-money laundering efforts. The anonymity, lack of centralized oversight, and jurisdictional inconsistencies create loopholes that bad actors exploit to evade taxes and launder money.However, global regulatory bodies are adapting through measures like AML directives, KYC mandates, and blockchain forensic tools. Technologies such as AI-powered compliance monitoring, CBDCs, and decentralized identity verification are promising solutions for bridging enforcement gaps.Nonetheless, challenges persist, particularly with DeFi platforms,...