Fiat, not Crypto and Bitcoin, Predominantly Used in Money Laundering

Thursday 08 April 2021, 10:55 PM AEST - 2 weeks ago

generic cash money laundering dollar

Crypto, including Bitcoin and Monero, have had some bad rap over the years for their alleged use as vehicles proliferating illegal activities like money laundering– A Big Fat Lie.

From the onset–and perhaps because of the misunderstanding of the technology powering Bitcoin and the nature of BTC transactions, bad actors jumped in hoping to move their ill-gotten proceeds but to their unexpected bad ending.

468x60-1.gifOver the years, millions worth of BTC have been confiscated by law enforcement and auctioned, making some of the greatest personalities in Bitcoin (read Tim Draper) billionaires.Compliance, Security Enhancement, and Maturing Crypto Sphere

However, much cant be said about banks. Surprisingly, even with the opaque nature of operations, the mainstream media continues with their misinformation campaign. They are deliberately excising hard facts in a desperate attempt to cover banks who are the main culprits.

Bitcoin—and most crypto networks, unlike traditional legacy rails, operate transparently and openly.

With no single entity in control and third parties helpfully able to analyze all coin movements—and therefore critical financial information, they can analyze huge sets of data and even crack the identities of transactors since, by default, all BTC transactions, due to cryptography, are pseudonymous.

Cryptocurrency exchanges, classified as financial service providers, have made it even incredibly hard for users—its clients, to launder money in any form.

Compliance via Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules help regulators to get behind the wall of anonymity and pseudonymity of crypto transactions. Therefore, it is a bad idea for bad elements to abuse this new financial tool.

Thats not all; third-party blockchain analytics firms–contracted by law enforcement or exchanges whenever there are exchange hacks, have grown in sophistication over the years.

For instance, Chainalysis has a contract with the United States Internal Revenue Service (IRS). They claim to have th ...

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