3 ms·
China is a closed economy, it makes sense that they would put a ban on a technology which outside of speculative investment is largely used to facilitate money
by eberkund 9y ago
China is a closed economy, it makes sense that they would put a ban on a technology which outside of speculative investment is largely used to facilitate money laundering.
- josu 9y agoMoney laundering is currently not an issue, it has more to do with capital controls.
- samstave 9y agoSerious question: how are capital controls vs money laundering different from the perspective of the one with the money?
- mkwldbttr 9y agoDepends if you obtained your funds legally or illegally? With former you are betting against Chinese economy with latter you are looking to leave less traces of activities that got you those funds.
- mirimir 9y agoThat's not such a strong distinction, I think. I mean, "legally" and "illegally" are defined by the State. And there's plenty opportunity for selective/surprise enforcement.
- tehwebguy 9y agoYeah but that's what laundering is. Making money that would be designated dirty by the state look clean. This is more of just hiding it outright, I think?
- mirimir 9y agoWell, domestic capital leaving China is largely illegal. So circumventing laws through Bitcoin is arguably money laundering. And indeed, US laws against money laundering apply regardless of the source.
- aianus 9y ago> Well, domestic capital leaving China is largely illegal Says whom? I imagine anyone who got rich legally in China would also try to get the capital out and diversify in more developed countries.
- deleted 9y ago[deleted]
- mirimir 9y agoI meant that there aren't many legal ways to get it out.
- pertymcpert 9y agoWhat? They're completely different things.
- mirimir 9y agoIn many places, it all depends on who you are, and who you know.
- 6nf 9y agoMoney laundering: I have loads of money from selling drugs. I can't use that money to buy a house because I can't explain to the government how I got it. So I have to launder the money through legitimate businesses. Capital controls: I have loads of money made legally but I want to move it offshore. The government won't allow large amounts of money to leave the country so I need to find a way around that restriction. For example by buying a bar of gold locally and shipping it out.