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Are crypto-currencies not effective as a money-laundering method? I had assumed that part of the great rise and fall of BTC was dark money flowing in & out on
by dmckeon 8y ago
Are crypto-currencies not effective as a money-laundering
method? I had assumed that part of the great rise and fall
of BTC was dark money flowing in & out on its way to some
clean-looking equivalent, plus some speculation on the side.
- nerdwaller 8y agoI’d argue (generally) no, because literally every transaction is in the ledger. Then there are two ways to get value back out: 1. At some point you want to get fiat back out, thus associating your identity to transactions. While there are some exchanges that are less stringent on verification requirements, the tie is pretty simple to see via the surveilled central banking system in most countries that tends to maintain the strict-ish verifications. 2. Exchange for goods. Unless this is off-chain, it’s again pairing a physical good back out somehow in an exchange of things.
- cslarson 8y agoYou can get around this by "washing" via a privacy coin like monero.
- UncleEntity 8y agoYou can also "wash" physical bank notes but that in no way helps you launder the money, you still need a plausible explanation on how it is in your possession when The Man comes asking.
- nerdwaller 8y agoDefinitely a good point, though really depends on where how that Monero trade happens. If it’s ever traded/redeemed on an exchange, that privacy mostly disappears.