3 ms·
Tumbling coins has everything to do with money laundering. Of course, the source of the funds isn’t necessarily illicit.
by ryanlol 6y ago
Tumbling coins has everything to do with money laundering. Of course, the source of the funds isn’t necessarily illicit.
- crazygringo 6y agoMoney laundering is turning dirty money into clean, that appears legitimate, taxable etc. If the source isn't illicit, it isn't laundering because there's nothing to clean. Tumbling coins is just obscuring their origin. The two don't inherently have anything to do with each other. Even if you tumble "dirty" coins, you've got to explain to the IRS the source of income behind the new coins. Tumbling, in and of itself, doesn't achieve that.
- nybble41 6y agoBitcoins may get a pass because they aren't technically "money", but in general any business that transfers money on behalf of another entity without knowing exactly who both the sender and recipient are—and registering as a money transmission business, a very expensive process—will be considered to be involved in money laundering. Even if the money is provably "clean" to begin with. A company that implemented anything like a "tumbler" for USD would most certainly run afoul of anti-money-laundering regulations. It's not right, but that's the way the rules are written.