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Other way around. Stablecoins are essentially Venmo for crime. They get zero benefit from a blockchain. They are centralized, trusted and permissioned. Circle c

Other way around. Stablecoins are essentially Venmo for crime. They get zero benefit from a blockchain. They are centralized, trusted and permissioned. Circle can freeze the USDC in your self-custody wallet at any time and you’re on your own bud. This whole thing is antithetical to crypto’s core ethos. You could replicate USDC with a website where you log in with a password and move money between numbered accounts and they don’t run any AML/KYC checks on you. If you did that it would be super illegal. In fact someone did exactly this, it was called Liberty Reserve and everyone went to prison. But because it’s got the magic of the blockchain laws don’t apply.

djrj477dhsnv 1y ago
Good. AML/KYC laws are a huge abuse of state power.
- arcticbull 1y ago
  Great opinion.
  - beeflet 1y ago
    Great rebuttal! The government has existed for hundreds of years before these sophisticated mechanisms of surveilling the money system and the people were introduced. And it will continue to exist should they be removed.
    - arcticbull 1y ago
      You know everything was shit hundreds of years ago right, the wildcat banking system collapsed into miserable failure and the bearer instruments were eliminated because of the risk of train robberies.
      - topranks 1y ago
        Good news! They’re back!
- throwaway2037 1y ago
  Serious question: What is the practical alternative? What do you think will happen if we reduce/remove AML/KYC requirements?
  - djrj477dhsnv 1y ago
    The alternative is the freedom to make any financial transaction without the government being involved. If your concern is effective taxation, there are plenty of methods that worked historically while preserving financial privacy like property taxes.
    - topranks 1y ago
      Pretty sure they didn’t that’s why we brought in anti money-laundering laws.
    - mxschumacher 1y ago
      it's not about taxes, it's about fighting illegal activity. Terrorist financing, drug dealing, human trafficking etc - do you really think it's a good idea to let those actors exchange payments freely?
      - losvedir 1y ago
        What's next, random searches at road checkpoints? Do you really want to let those actors use roads freely?
        topranks 1y ago
        Do you the police should have zero power to set up checkpoints, or search cars even with a warrant?
        djrj477dhsnv 1y ago
        Checkpoints, no. Searches with a warrant, yes.
derangedHorse 1y ago
> Stablecoins are essentially Venmo for crime What is your source for stablecoins being "for crime"? I've seen many individuals from countries all over the world utilize stablecoins in ways legal for their jurisdiction.
- arcticbull 1y ago
  > The devastating impact of these scams is evident in the staggering losses reported globally. In 2024 alone, cryptocurrency investment fraud, largely driven by pig butchering schemes, caused over $5.8 billion in reported losses in the U.S. The anonymity and cross-border nature of cryptocurrency transactions have historically made these scams incredibly challenging to investigate and prosecute, allowing criminal syndicates to operate with relative impunity. https://blockchain.bakermckenzie.com/2025/07/01/the-225-million-crypto-seizure-a-landmark-in-pig-butchering-scam-combat/ https://blockchain.bakermckenzie.com/2025/07/01/the-225-mill... It’s slower, riskier, with less protection and usually more expensive than a classical financial transaction. So it self selects for criminals.
  - derangedHorse 1y ago
    I don't think that logic checks out. It being "slower, riskier, with less protection and usually more expensive" are not properties that self selects for criminals. Stablecoins typically being self-custodial, easier to transfer in large amounts, and internationally accessible seem like it would support criminals, but with stablecoins, funds can be frozen just like bank deposits can. This is emphasized in the article you linked: > The investigation began in late 2023 when Tether, the issuer of the USDT stablecoin, proactively froze 39 wallet addresses containing $225 million in stolen USDT after detecting suspicious activity. This immediate action was critical in preventing further dispersion of the illicit funds. Paolo Ardoino, CEO of Tether, was quoted as saying, “Tether’s work with the Department of Justice underscores our commitment to transparency, proactive engagement with law enforcement, and the protection of users across the digital asset ecosystem.” And the number you quoted is for cryptocurrency at large, not stablecoins. I imagine the number looks a lot different when we filter for that subset of usecases. For the large amounts used in stories like this, banks would be a better indicator for comparison[1][2]. Venmo, Cashapp, and Zelle have had their fair share of scandals as well[3]. [1] https://en.wikipedia.org/wiki/Wachovia#Latin_drug_cartel_money_laundering https://en.wikipedia.org/wiki/Wachovia#Latin_drug_cartel_mon... [2] https://www.reuters.com/business/finance/td-bank-appoints-compliance-monitor-after-3-billion-us-penalty-money-laundering-2025-02-27/ https://www.reuters.com/business/finance/td-bank-appoints-co... [3] https://www.freep.com/story/money/personal-finance/susan-tompor/2024/06/05/payment-apps-scam-virtual-pickpocketing/73920690007/ https://www.freep.com/story/money/personal-finance/susan-tom...

djrj477dhsnv 1y ago

Good. AML/KYC laws are a huge abuse of state power.

arcticbull 1y ago
Great opinion.
- beeflet 1y ago
  Great rebuttal! The government has existed for hundreds of years before these sophisticated mechanisms of surveilling the money system and the people were introduced. And it will continue to exist should they be removed.
  - arcticbull 1y ago
    You know everything was shit hundreds of years ago right, the wildcat banking system collapsed into miserable failure and the bearer instruments were eliminated because of the risk of train robberies.
    - topranks 1y ago
      Good news! They’re back!
throwaway2037 1y ago
Serious question: What is the practical alternative? What do you think will happen if we reduce/remove AML/KYC requirements?
- djrj477dhsnv 1y ago
  The alternative is the freedom to make any financial transaction without the government being involved. If your concern is effective taxation, there are plenty of methods that worked historically while preserving financial privacy like property taxes.
  - topranks 1y ago
    Pretty sure they didn’t that’s why we brought in anti money-laundering laws.
  - mxschumacher 1y ago
    it's not about taxes, it's about fighting illegal activity. Terrorist financing, drug dealing, human trafficking etc - do you really think it's a good idea to let those actors exchange payments freely?
    - losvedir 1y ago
      What's next, random searches at road checkpoints? Do you really want to let those actors use roads freely?
      - topranks 1y ago
        Do you the police should have zero power to set up checkpoints, or search cars even with a warrant?
        djrj477dhsnv 1y ago
        Checkpoints, no. Searches with a warrant, yes.

derangedHorse 1y ago

> Stablecoins are essentially Venmo for crime What is your source for stablecoins being "for crime"? I've seen many individuals from countries all over the world utilize stablecoins in ways legal for their jurisdiction.

arcticbull 1y ago
> The devastating impact of these scams is evident in the staggering losses reported globally. In 2024 alone, cryptocurrency investment fraud, largely driven by pig butchering schemes, caused over $5.8 billion in reported losses in the U.S. The anonymity and cross-border nature of cryptocurrency transactions have historically made these scams incredibly challenging to investigate and prosecute, allowing criminal syndicates to operate with relative impunity. https://blockchain.bakermckenzie.com/2025/07/01/the-225-million-crypto-seizure-a-landmark-in-pig-butchering-scam-combat/ https://blockchain.bakermckenzie.com/2025/07/01/the-225-mill... It’s slower, riskier, with less protection and usually more expensive than a classical financial transaction. So it self selects for criminals.
- derangedHorse 1y ago
  I don't think that logic checks out. It being "slower, riskier, with less protection and usually more expensive" are not properties that self selects for criminals. Stablecoins typically being self-custodial, easier to transfer in large amounts, and internationally accessible seem like it would support criminals, but with stablecoins, funds can be frozen just like bank deposits can. This is emphasized in the article you linked: > The investigation began in late 2023 when Tether, the issuer of the USDT stablecoin, proactively froze 39 wallet addresses containing $225 million in stolen USDT after detecting suspicious activity. This immediate action was critical in preventing further dispersion of the illicit funds. Paolo Ardoino, CEO of Tether, was quoted as saying, “Tether’s work with the Department of Justice underscores our commitment to transparency, proactive engagement with law enforcement, and the protection of users across the digital asset ecosystem.” And the number you quoted is for cryptocurrency at large, not stablecoins. I imagine the number looks a lot different when we filter for that subset of usecases. For the large amounts used in stories like this, banks would be a better indicator for comparison[1][2]. Venmo, Cashapp, and Zelle have had their fair share of scandals as well[3]. [1] https://en.wikipedia.org/wiki/Wachovia#Latin_drug_cartel_money_laundering https://en.wikipedia.org/wiki/Wachovia#Latin_drug_cartel_mon... [2] https://www.reuters.com/business/finance/td-bank-appoints-compliance-monitor-after-3-billion-us-penalty-money-laundering-2025-02-27/ https://www.reuters.com/business/finance/td-bank-appoints-co... [3] https://www.freep.com/story/money/personal-finance/susan-tompor/2024/06/05/payment-apps-scam-virtual-pickpocketing/73920690007/ https://www.freep.com/story/money/personal-finance/susan-tom...