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I think it's that BTC is easier to get victims to buy without oversight. There are Bitcoin ATMs. Buying Bitcoin from an ATM is like sending money via Western Un

by derefr 5y ago

I think it's that BTC is easier to get victims to buy without oversight. There are Bitcoin ATMs. Buying Bitcoin from an ATM is like sending money via Western Union, but without the teller there to spot someone looking like they're under duress. As for anonymity on the receiving end: the BTC can always just be exchanged for a more anonymous currency like Monero. You might think that'd require the criminal to KYC to a [centralized] exchange, but there are decentralized exchanges (i.e. DEXes — on-chain, crypto-for-crypto exchanges with no support for fiat deposit/withdrawal), and these have no need for KYC, since they don't touch the real banking system.

throwaway894345 5y ago
KYC?
- vmception 5y ago
  Client identification information that banks and brokerages are required to collect.
- derefr 5y ago
  Know Your Customer (KYC) — a compliance process required by Anti-Money Laundering (AML) laws, involving getting a unique government-issued identification document or other similar "identity proof" from your customers, before allowing them to use your service. Any service that takes deposits or processes payments in certain countries is required to follow those countries' KYC/AML regulations. The actual AML laws are mostly about noticing when a given person has processed $10k or more through your service in a single day. But note that that's "person", not "account." You have to de-anonymize your accounts, in order to associate them with people, in order to obey the law. The conventional KYC "compliance" measures — gathering ID documents et al — are actually not part of the law itself, but rather are industry best-practices for following the AML laws. The KYC process gives service-providers the information needed to restrict each person to having only a single account; and therefore allow service-providers to treat each account as a person under the letter of the AML laws.
- deleted 5y ago
  [deleted]

by derefr 5y ago

throwaway894345 5y ago

KYC?

vmception 5y ago
Client identification information that banks and brokerages are required to collect.
derefr 5y ago
Know Your Customer (KYC) — a compliance process required by Anti-Money Laundering (AML) laws, involving getting a unique government-issued identification document or other similar "identity proof" from your customers, before allowing them to use your service. Any service that takes deposits or processes payments in certain countries is required to follow those countries' KYC/AML regulations. The actual AML laws are mostly about noticing when a given person has processed $10k or more through your service in a single day. But note that that's "person", not "account." You have to de-anonymize your accounts, in order to associate them with people, in order to obey the law. The conventional KYC "compliance" measures — gathering ID documents et al — are actually not part of the law itself, but rather are industry best-practices for following the AML laws. The KYC process gives service-providers the information needed to restrict each person to having only a single account; and therefore allow service-providers to treat each account as a person under the letter of the AML laws.
deleted 5y ago
[deleted]