How do cryptocurrencies relate to money laundering?

Cryptocurrencies are often associated with money laundering primarily due to the aspect of anonymity they provide. Many cryptocurrencies allow users to conduct transactions without revealing their identities, which can make it easier for individuals to engage in illicit activities without attracting attention. This anonymity serves as a key feature that can enable money laundering by obscuring the trail of funds and making it difficult for authorities to trace the origins of the money.

While other options touch on aspects of cryptocurrencies, they do not address the core issue of how their characteristics facilitate money laundering. Low transaction fees may make cryptocurrencies more attractive for a variety of transactions, but they don't specifically relate to the concealment of funds. Regulation varies widely across different jurisdictions and does not apply uniformly to all cryptocurrencies, thus not implying anti-money laundering measures. The claim that cryptocurrencies are impossible to exchange for fiat currency is misleading, as many platforms exist precisely to facilitate such exchanges, further enabling the potential for money laundering if proper controls are not in place.