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> The authorities are going to want you to prove that you aren't involved in the illegal activity if you don't want to be charged with money laundering. The on

> The authorities are going to want you to prove that you aren't involved in the illegal activity if you don't want to be charged with money laundering. The onus is on the government to determine an illicit origin for their charge of money laundering to stick. This is related to the US federal crime of Money Laundering, and not any other variation. In the Monero system, receivers do not know the address of the sender. So, that's convenient.

acdha 8y ago
US requires currency exchanges to make a strong identification for the customer in every transaction. Using Monero does not remove that requirement any more than using a suitcase of cash which just happened to show up in your office would. That alone would be a federal crime and it almost certainly would be enough to get search warrants, etc. which would likely turn up evidence for other charges for anyone who is running an exchange while badly misinformed about the law. Anyone trying to be legit is going to steer clear of those hypothetical Iranian transactions, especially since the odds of being compromised in some other way are high even in the unlikely case that Monero can withstand a nation-state level adversary. For any significant volume – such as what we’re talking about – traffic analysis is going to get a lot of info and since it involves Iran you’d be betting that none of numerous highly-capable intelligence agencies have compromised another party who has a trace pointing at you.
- gammateam 8y ago
  Yes but this would be a DIFFERENT crime which I made it extremely clear we aren't talking about Nation states aside, the point you seem to be missing is that many people people are able to acquire goods and services directly with Monero without using an exchange. Merchants are not subject to the regulations that national currency exchanges are subject to and there is no framework to create this kind of prohibition right now.
  - acdha 8y ago
    > Nation states aside, the point you seem to be missing is that many people people are able to acquire goods and services directly with Monero Which is true for sufficiently small definitions of “many” but not what this thread was about. If you’re going to handwave about how being charged under financial reporting rules designed to prevent money laundering is a completely different crime then you have to acknowledge that there are reasons why a system which is adequate for a few people making occasional purchases will have big problems scaling up to the level of a nation laundering money to get around sanctions.

acdha 8y ago

US requires currency exchanges to make a strong identification for the customer in every transaction. Using Monero does not remove that requirement any more than using a suitcase of cash which just happened to show up in your office would. That alone would be a federal crime and it almost certainly would be enough to get search warrants, etc. which would likely turn up evidence for other charges for anyone who is running an exchange while badly misinformed about the law. Anyone trying to be legit is going to steer clear of those hypothetical Iranian transactions, especially since the odds of being compromised in some other way are high even in the unlikely case that Monero can withstand a nation-state level adversary. For any significant volume – such as what we’re talking about – traffic analysis is going to get a lot of info and since it involves Iran you’d be betting that none of numerous highly-capable intelligence agencies have compromised another party who has a trace pointing at you.

gammateam 8y ago
Yes but this would be a DIFFERENT crime which I made it extremely clear we aren't talking about Nation states aside, the point you seem to be missing is that many people people are able to acquire goods and services directly with Monero without using an exchange. Merchants are not subject to the regulations that national currency exchanges are subject to and there is no framework to create this kind of prohibition right now.
- acdha 8y ago
  > Nation states aside, the point you seem to be missing is that many people people are able to acquire goods and services directly with Monero Which is true for sufficiently small definitions of “many” but not what this thread was about. If you’re going to handwave about how being charged under financial reporting rules designed to prevent money laundering is a completely different crime then you have to acknowledge that there are reasons why a system which is adequate for a few people making occasional purchases will have big problems scaling up to the level of a nation laundering money to get around sanctions.