Review Bitcoin No Longer A Haven For Criminals And Fraudsters

Discussion in 'Crypto Learning Center (Library)' started by philipj, Nov 14, 2017.

  1. philipj

    philipj GrandMaster Crypto Guardian

    Although bitcoin is decentralized, uncensorable and distributed in nature, it is not anonymous. Despite this, it was still difficult to trace a transaction to someone, since it is just the address that is displayed without a name.

    It became a haven for criminals, fraudsters and money laundering

    From when bitcoin started, a lot have changed.. Billions of dollars worth of bitcoin are transacted on a daily basis. The trading platforms and exchanges that hve emerged, have been licensed by governments and financial regulators

    With such regulation, it was no longer possible for criminals and fraudsters to cash-in or sell their bitcoin without triggering existing Know Your Customer (KYC) and Anti-Money Laundering (AML) systems. Today, the AML and KYC systems incorporated by bitcoin exchanges and trading platforms are on par with the systems integrated by conventional banking and financial service providers.

    Through this system, they are able to trace transaction from its originating point to its end point which could either be a trading platform or an exchange where a customer's documentation could be found.

    Some anti money laundering companies have been formed that have specialised software to carryout such task. One of such companies is Chainanalysis

    For instance, since 2015, the U.S. Internal Revenue Service, the Federal Bureau of Investigation, the Securities and Exchange Commission, the Drug Enforcement Administration, Immigration and Customs Enforcement, and Europol, have been collaborating with Chainanalysis to lead bitcoin-related high profile investigations.

    However, there is a certain service that have been developed to conceal ones identity. It is called mixing service. We also have some cryptocurrencies that can do that on its own. Like Monero, Zcash and a new entrant Verge.
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