A Timeline and Analysis of Recent Bitcoin Money-Laundering Detection Methods

Money laundering poses a significant threat to the integrity of financial systems worldwide and with the development of blockchain technology, new avenues for illegal activities have emerged. The accelerated evolution of blockchain technology has outpaced the progression of corresponding regulatory frameworks, creating a fruitful environment conductive to financial crimes. Current anti-money laundering (AML) techniques often struggle to adapt to the complex and dynamic nature of blockchain transactions, continuously proving the need to reassess both technological and legislative approaches. This paper undertakes a critical analysis of the methods used to detect illegal actions performed on the Bitcoin blockchain. We discuss detection taxonomy, as well as its challenges and opportunities, while also providing a timeline of past and current research.