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Isn't the real risk that cryptocurrency becomes the new laundry service? Buy FOOCOIN, spend FOOCOIN on asset, don't report to the IRS, repeat. Other direction
by alex_young 9y ago
Isn't the real risk that cryptocurrency becomes the new laundry service?
Buy FOOCOIN, spend FOOCOIN on asset, don't report to the IRS, repeat.
Other direction:
Sell asset for FOOCOIN, buy $ with FOOCOIN, don't report to the IRS, repeat.
- debt 9y agoLocalBitcoins seems to a pretty good laundry service. Nothing's impossible but I can't figure out for the life of me how exactly anyone including governments could de-anonymize LocalBitcoins.
- PeterisP 9y agoIt's nontrivial to launder, say, $100k in LocalBitcoins. The IRS doesn't care if you deanonymize tiny amounts (say, a few thousand dollars) but de-anonymizing LocalBitcoins for large operations can be easily done in the classic manner with sting operations since doing it regularly in large amounts generally is a crime even if the money is legitimately obtained. Since the major traders in LocalBitcoin inevitably are violating money laundering laws if they don't report the large cash transactions, you should expect that they can be pressured to cooperate and report on their customers in exchange for immunity or reduced penalties.
- Vadoff 9y agohttps://www.coindesk.com/9-years-localbitcoins-trader-sentenced-latest-money-transmission-case/ https://www.coindesk.com/9-years-localbitcoins-trader-senten...
- PeterisP 9y agoIf you by large assets with FOOCOIN, the same rules apply for asset seller as if you paid in cash, i.e. they must report the transaction to authorities if it's above a certain amount (wasn't it $10k in USA?). So either you're limited to small amounts, or you have to buy the assets under the table with the usual laundering problems.
- garmaine 9y agoThat’s not true actually. Barter has different rules than actual cash. I mean yes, you still have to pay your taxes. But you’re not subject to suspicious activity reporting requirements.
- koolba 9y agoStructuring your payments to be multiple below the $10K threshold specifically to avoid triggering AML reporting requirements is illegal.
- gesman 9y agoThe problem is proof of new ownership after you exchange your asset for FOOCOIN. Its ok to sell used furniture or drugs - but doesn’t make sense to sell house or car.