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> It's not useful for money transmission, It's extremely useful for money transmission, and a way to bypass KYC/AML entirely. For example, Iran can export hero
by dcolkitt 6y ago
> It's not useful for money transmission,
It's extremely useful for money transmission, and a way to bypass KYC/AML entirely. For example, Iran can export heroin to Europe and get paid in Tether. It can then use that Tether to buy weapons from North Korea. North Korea can then spend that Tether to import luxury goods from the West. At which point, it then gets sent to Binance and converted back to clean fiat.
None of that's possible with SWIFT. Yes Tether's risky. But in many parts of the world, holding dollars in a bank account is riskier.
- csomar 6y ago> At which point, it then gets sent to Binance and converted back to clean fiat. Not sure this is going to work for $100m+ amounts.
- FDSGSG 6y agoWhy not?
- csomar 6y agoYou are going to be hit by KYC from Binance and the bank you are withdrawing the money to.
- vidarh 6y agoThe companies withdrawing the money in that scenario would be a number of legitimate luxury goods sellers. KYC would need to uncover that their customers, possibly through several layers of further indirection, have channeled illegitimate funds from North Korea.
- csomar 6y agoThere isn't a big market where people pay for luxury goods with Crypto. This is going to raise eyebrows. As much as the crypto landscape is the wild west, banking on/off crypto is incredibly hard.
- vidarh 6y agoI'm not suggesting it wouldn't be hard. But the point is that if you've found somewhere to buy valuable goods for with Tether from a suspect source, then the KYC isn't your problem any more, it's theirs. And it's theirs only if your purchases make up a conspicuous enough portion of their order flow to cause their bank to take a closer look, and assuming that the way you did those purchases causes looking at the source of those order to raise further red flags. People will look just as hard as they have to in order to shift the risk to someone else.
- vkou 6y agoOkay, sure, but those are some pretty odd requirements, that are only relevant to a tiny fraction of people. I doubt the friends and loved ones of the grandparent poster are buying surplus Soviet weapons from North Korea, hence why I don't understand why they need to be warned away from it. I understand why a normie gets into bitcoin or GME or dogecoin speculation. I don't understand why they would get into Tether - hence I don't understand why warning them away from Tether is a priority!
- shinryuu 6y agoIn many exchanges you exchange your crypto against tether (usdt) instead of real dollars. There are other alternatives such as USDC as well.