4 ms·

Basically people need to launder their legitimately earned/acquired crypto just so financial institutions don't flag it.

capableweb 5y ago
Not sure how you understanding "laundering" but legitimately earned cryptocurrencies does not need laundering in any sense, just a explanation about where it comes from, like when you receive any other large amount of money to your bank account. This has happened to me (the bank approached me asking where it comes from) both when "selling" large amount of startup stocks/options and when receiving money from selling legitimately earned cryptocurrencies on a exchange (the cryptocurrency exchange approached me asking where it comes from).
- vmception 5y ago
  This article is about the explanation being sufficient but the bank deciding the prior owner had illegitimate earnings due to the prior use of a mixer so flagged it anyway. So the way around that would be to further obfuscate and layer.
  - WJW 5y ago
    Do you think the exchanges will throw up their hands and go "oh well tricked us you clever bastard, you go free now"? I think it is much more likely that, if they can't determine the origin of coins because it has been obfuscated so much, they will just block it just to be sure. Making crypto an unacceptable KYC/AML risk will not convince the banks to allow it anyway; that's just not how banks work.
    - vmception 5y ago
      I do think that, yes, I know what technology they use to assign thresholds to transactions for flagging or freedom.
      - WJW 5y ago
        I agree that at the moment it's probably not all that sophisticated, but with the incredible trackability of most crypto I don't hold much hope that there won't be mandatory blacklisting of "dirty" coins. I could easily see a couple of SAAS providers providing "AML compliance as a service" for various blockchains.

4 ms·

Basically people need to launder their legitimately earned/acquired crypto just so financial institutions don't flag it.

by vmception 5y ago

capableweb 5y ago
Not sure how you understanding "laundering" but legitimately earned cryptocurrencies does not need laundering in any sense, just a explanation about where it comes from, like when you receive any other large amount of money to your bank account. This has happened to me (the bank approached me asking where it comes from) both when "selling" large amount of startup stocks/options and when receiving money from selling legitimately earned cryptocurrencies on a exchange (the cryptocurrency exchange approached me asking where it comes from).
- vmception 5y ago
  This article is about the explanation being sufficient but the bank deciding the prior owner had illegitimate earnings due to the prior use of a mixer so flagged it anyway. So the way around that would be to further obfuscate and layer.
  - WJW 5y ago
    Do you think the exchanges will throw up their hands and go "oh well tricked us you clever bastard, you go free now"? I think it is much more likely that, if they can't determine the origin of coins because it has been obfuscated so much, they will just block it just to be sure. Making crypto an unacceptable KYC/AML risk will not convince the banks to allow it anyway; that's just not how banks work.
    - vmception 5y ago
      I do think that, yes, I know what technology they use to assign thresholds to transactions for flagging or freedom.
      - WJW 5y ago
        I agree that at the moment it's probably not all that sophisticated, but with the incredible trackability of most crypto I don't hold much hope that there won't be mandatory blacklisting of "dirty" coins. I could easily see a couple of SAAS providers providing "AML compliance as a service" for various blockchains.