Bitcoin Forum

There are many ways to laundering money. Bitcoin records the payments made in a transparent manner. But Payments provide anonymity about who did it.

Can Bitcoin be used as a method of money laundering?

Yes it is since it was decentralized.

That's why you can see some bitcoin exchanges requiring their customers to give their personal information. This is to ensure that all transactions made by that exchange is not really an anonymous to prevent money fraud and illegal money activities. Also it's a part of exchanges mandatory regulations to follow the law of any country regarding money laundering.

No it does not. All payments are tied to their respective inputs, which indirectly ties them to distinguishable addresses. Hence Bitcoin is pseudonymous. Once someone (e.g. a law enforcement agency raiding your home) learns which address belongs to whom, they can understand who did which payment. A fully anonymous system would not allow this.


Sure.

Ofcourse it can. You can also use gift vouchers, prepaid visa cards and of course normal cash as a method of money laundering. Bitcoin is not exempt from it. This of course is an extremely minimal aspect of what Bitcoin could be used for. There are mixers and many other methods of bypassing the user information being extracted and identified, and if one was smart enough they could make sure that it could not be traced back to them, but such a person would be able to do the same with many other forms of currency.

Yes this is true thats why they really require documents regarding for those people who bought or sell of huge amounts of bitcoin to prevent money laundering that is against on the law but there are people would really find ways on how to use it because of bitcoins anonymity feature money laundering is very possible indeed.

Bitcoin. Is. Not. Anonymous. There is no"anonymity feature". Money laudering is possible regardless and heavily regulating will not work. You dont combat money laundering with drift nets, but with foot work.

Why use Bitcoin, if there are more anonymous crypto currencies out there at the moment? Bitcoin is Pseudo-anonymous like someone already

mentioned, and with the correct tools or a little help from a judge, most bitcoins can be traced to the user.  ::) ... On the other hand, most of

the money laundering are being done with cash, because it is more anonymous than Bitcoin. {If done correctly}

The estimated amount of money laundered globally in one year is 2 - 5% of global GDP, or $800 billion - $2 trillion in current US dollars. Do

you think Bitcoin can handle that with a $800+ per bitcoin price tag at the moment?  ???

Very good point! Cheers for that. Do you think you could please source those numbers?

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