4 ms·
They can say that no exchange is permitted exchange money for any wallet that accepts transactions from sanctioned entities. Similarly, they can put sanctions
by olliej 5y ago
They can say that no exchange is permitted exchange money for any wallet that accepts transactions from sanctioned entities.
Similarly, they can put sanctions on operators in other countries - if you run an exchange that provides real money in exchange for tainted currency, then maybe your own wallets end up in the “us exchanges cannot convert to real money” bucket.
So I think she does understand you can’t directly stop the transactions, but as with money laundering through crypto I suspect she knows how to make life much harder for people who facilitate it.
- anm89 5y agoHave you ever watched congressional hearings? Many lawmakers seem to struggle with technical concepts way simpler than an immutable distributed ledger.
- olliej 5y agoYes I do think she understand, and yes, many don’t. But even if they don’t understand, they generally understand how to manage laundering: yiu require proof that assets come from a source that isn’t illegal. This has nothing to do with immutability (and in fact is aided by it): if a US exchange has data that suggests an illegal source that triggers money laundering work - which involves providing evidence of the legitimate source. Similar laws exist in most countries at this point. You can’t get around this by using a foreign exchange either, because bringing the money into you country of residence also likely runs into laundering checks. So even if they don’t understand immutability (which I suspect is not going to be the case) or whatever magic feature crypto is ostensibly offering, they do understand anti-laundering tools, and those are increasingly effective now that banks have actually started receiving penalties for violating anti-laundering laws.