According to a recent report, less than 1% of all bitcoin transactions involve money laundering
In a recent report by the FDD and Ellicit, a bitcoin forensics company, it was shown that less than 1% of all bitcoin transactions were involved in some form of money laundering.
Let that sink in for a moment...
Less than 1%!
I am not exactly sure how they were able to come up with that number, but I would imagine and venture to say that much more than 1% of all cash transactions are involved in some sort of money laundering, but that is just an outright guess on my part.
Given that, should we outlaw cash?!
That is the line of thinking that many of bitcoin's critics have used to throw cold water on the bitcoin idea.
Some information about the report:
The report was written by FDD and Ellicit (the former of which can be found here: http://www.defenddemocracy.org/) in order to help analyze and show the flow of funds using the bitcoin network.
The results indicate that money laundering isn't nearly the problem that some people think it is.
Specifically, this was a quote form the report:
“The amount of observed Bitcoin laundering is small and darknet marketplaces such as Silk Road and, later, AlphaBay are generally the source of almost all of the illicit Bitcoins laundered through conversion services.”
(Source: https://cointelegraph.com/news/bitcoin-laundering-less-than-one-percent-of-all-transactions)
Which basically means, get rid of such marketplaces, and the amount of money laundering drops significantly. Judging by recent US regulatory action, I would imagine that they know this already.
Surprisingly, or not surprisingly depending on your view point, the vast majority of money laundering was said to be coming from Europe.
*According to the report, more than 5 times as many illicit bitcoin transactions take place in Europe vs. North America.
Their suggestion?
AML and KYC regulations need to improve.
AML = Anti Money Laundering
KYC = Know Your Customer
Both of which have been heavy focuses of cryptocurrency exchanges here in the US. Where you could once open a trading account with just an email, it now requires a phone number, an email, an ID, a social security number, a hair sample, and a drop of blood. (I am joking about those last two, sort of)
According to the report:
"The only way to manage the illicit transaction is for Financial authorities in all jurisdictions to increase AML enforcement.”
(Source: https://cointelegraph.com/news/bitcoin-laundering-less-than-one-percent-of-all-transactions)
Basically it sounds like they are calling for coordinated efforts across the globe to help each other combat illicit uses of cryptocurrencies.
I am assuming that is exactly what South Korea is about to do as well as several others.
Too bad China decided to bow out early and make it illegal...
Oh well, don't let the door hit you on the way... cough cough, I mean what a shame. :)
Stay informed my friends.
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The argument about the use of cryptocurrencies in money laundering and other illegal activities is partially true, but is a red herring. There is also a serious effort on the part of the financial elites in government and academia to ban cash as well, who make the same argument that cash is used for criminal activity. Bannng cash and cryptocurrencies would be a way for governments to gain more control over their citizens and monitor their every activity. It would also allow governments to do things like impose negative interest rates to coerce their people into spending if that's what the government wants them to do. Negative interest rates have been imposed in various countries but have been totally ineffective, in part because people and corporations can hold cash and other assets like gold to avoid losing money via negative interest rates.
Yeah, it's a losing battle. You cannot prevent what happens in shadows and secrecy without bearing enormous expense, restricting the rights of your citizens, or both. It is a losing battle, and one that we would all likely be best served by allowing it to happen. Spend resources to protect honest citizens from being affected by that activity. Use resources to dictate where and when it happens. Limit its effect on those who don't participate, don't spend money trying to prevent it from happening.
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety."
Benjamin Franklin
Amazing how easily people dismiss that phrase as "outdated". rolls eyes.
And fuck KYC/AML. It just makes my life more difficult and stops maybe 0.5 criminals.
again this is only talking about bitcoin which applicability and scalibility is questionable
There's no point in using bitcoin for any illicit activities when there are privacy-focused coins like Monero, Zcash and a host of other, less-known projects that have opaque chains.
KYC is a waste of time and introduces lots of risks for consumers as their data is hackable. Just look at waht happened to Equifax, but of course the gov. doesn't really give a shit about the consumer, they just want to be in charge of everything.
This number is definitely scary. But the thing is Governments can't just stop bitcoin usage or shut it down just because it is being used for money laundering. Money laundering has been happening for very long.Rather they should come up with a solution to it.
Would you suggest to keep Hodling LTC?
I think yes ..I'm holding LTC
Well it is still has the second cheapest transaction fee on Coinbase (bitcoin cash cheapest) so i'm sure a lot of people will continue to use it to transfer to alts...
That is why many, I am one of them, view the future will be to the ecentralized exchanges
So Bitshares is a good place to be?
Sure 👌
what do you think the price BTS will be at Dec2018?
Very Nice And Great Video Sir Really Appreciate able We Will Wish By Your Effort Steem Will Grow And Rise Thanks For Sharing Sir @jrcornel
The regulators aren't concerned about money laundering, except that they get their cut.
If they were, all the big banks would be shut down. They have already paid fines for money laundering. And we know they are continuing, because they have been fined again.
So, its not about money laundering, its about making sure the tax cattle cannot escape. All the little people have to stay and take their hair cut. (Like Crimea) While all the big boys, in the club, get to avoid such.
Fortunately, if the govern-cement does ban cryptos, it will only make them more valuable, and more people will use them. See any of the past prohibitions.
Yep. The tax issue is huge. I think having such an open international exchange program is making the tax collector sweat. How can you possibly track the trades and gains on exchanges who are housed everywhere throughout the globe? You pretty much have to rely on the tax payer's honesty, and they are unlikely to do that.
Especially when honesty can cost you so much.
Never speak of bitcoin and the Infernal Revolting Service will never ask you any questions.
Speak of bitcoin and they will have you over a barrel and demanding to know everything and after all that they will fine you for not doing what they said (after) in the first place.
wish I could resteem a comment after reading this
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They dont have to use bitcoin for money laundering If such currencies like monero and dash exist ))
Yep, it's pretty difficult to launder money with crypto anyways. At least on a grand scale. You can turn it into cash easy enough, but the difficulty of laundering money has never been getting cash, it's getting fiat into a legit bank account without raising eyebrows. Still not easy to do with crypto.
It will be interesting to see how cryptos for cannabis will fit into this world, as this blog says, less than 1 percent is used for money laundering. How do all the cannabis-related coins fit into this if they plan on using it for the exchange of cannabis (even legal cannabis)? Would that be considered "illicit activities" in the minds of regulators? Yet, the big banks are the biggest launderers of drug cartel money.