Bitcoin Must Be Seen for Money Laundering Potential, Finma Says

[tokeweed]

Switzerland’s financial market regulator says the virtual currency Bitcoin needs to be treated as a serious medium for illicit activity like money laundering in a sign of the widening acceptance of the digital payment system.

Bitcoin’s ability to be used anonymously and internationally increases the risk it could play a role in terrorist financing, Finma, as the regulator is known, said in a February report on draft of its revised decree on money laundering. Handelszeitung reported Finma’s mention of Bitcoin earlier today.

Full article here http://www.bloomberg.com/news/articles/2015-05-06/bitcoin-must-be-seen-for-money-laundering-potential-finma-says

[Amph]

they still think that bitcoin is anonymous, and they disregard the comparison with cash everytime, which is even more dangerous

they should ban cash first before even attempting to restrict bicoin, if they were really coherent whit what they want

[Shindo1988]

they still think that bitcoin is anonymous, and they disregard the comparison with cash everytime, which is even more dangerous

they should ban cash first before even attempting to restrict bicoin, if they were really coherent whit what they want

^^^ This.
Cash is completely anonymous.
Nobody knows if person A made a deal with Person B that is to be paid in cash.
But if person A made a deal with person B which is to be paid in Bitcoins, it will be seen on the block chain, then everybody will know.

[TheMage]

Switzerland’s financial market regulator says the virtual currency Bitcoin needs to be treated as a serious medium for illicit activity like money laundering in a sign of the widening acceptance of the digital payment system.

Bitcoin’s ability to be used anonymously and internationally increases the risk it could play a role in terrorist financing, Finma, as the regulator is known, said in a February report on draft of its revised decree on money laundering. Handelszeitung reported Finma’s mention of Bitcoin earlier today.

Full article here http://www.bloomberg.com/news/articles/2015-05-06/bitcoin-must-be-seen-for-money-laundering-potential-finma-says

The article is seriously lacking in content.


Also, I am astounded at the ignorance of regulators when talking about crypto currencies. Yes ok it could be used for money laundering. But then again the transaction is recorded and downloaded into every wallet in existence. Eventually it needs to be converted to fiat.... is 1+1 =2 to hard for regulators to understand?


I've been seriously contemplating on sending personal messages to regulators in order to attempt to educate them on crypto's. Starting with Ben Lawsky and his asinine Bitlicense.

[Whitehouse]

they still think that bitcoin is anonymous, and they disregard the comparison with cash everytime, which is even more dangerous

they should ban cash first before even attempting to restrict bicoin, if they were really coherent whit what they want

^^^ This.
Cash is completely anonymous.
Nobody knows if person A made a deal with Person B that is to be paid in cash.
But if person A made a deal with person B which is to be paid in Bitcoins, it will be seen on the block chain, then everybody will know.

You're skewing the facts here to suit your argument. You can just as easily say bitcoin is anonymous too because you don't really know who sent it. I have just sent a bitcoin payment across the world to some terrorists. Please show me the transaction and my name. It would be difficult for me to transfer cash to them without leaving a paper trail or exposing my identity.

[LFC_Bitcoin]

People will launder money with or without bitcoin.
This kind of thing annoys me, people trying to dirty the name of bitcoin.
Crooks, gangsters etc will always exist, it's like mentioning 'ISIS use bitcoin to fund arms dealing' or 'bitcoin is used to buy drugs'......Correct me if I'm wrong but I'm pretty sure cash can be used to buy drugs.
It's insane, the worldwide drug trade must be worth billions, how much of that is accounted by bitcoin use?

Next to none, that's the answer.

Back to the OP, if people want to launder money they will do it with or without bitcoin.
It seems stupid to bother mentioning bitcoin.

[acquafredda]

Switzerland’s financial market regulator says the virtual currency Bitcoin needs to be treated as a serious medium for illicit activity like money laundering in a sign of the widening acceptance of the digital payment system.

Bitcoin’s ability to be used anonymously and internationally increases the risk it could play a role in terrorist financing, Finma, as the regulator is known, said in a February report on draft of its revised decree on money laundering. Handelszeitung reported Finma’s mention of Bitcoin earlier today.

Full article here http://www.bloomberg.com/news/articles/2015-05-06/bitcoin-must-be-seen-for-money-laundering-potential-finma-says

The article is seriously lacking in content.


Also, I am astounded at the ignorance of regulators when talking about crypto currencies. Yes ok it could be used for money laundering. But then again the transaction is recorded and downloaded into every wallet in existence. Eventually it needs to be converted to fiat.... is 1+1 =2 to hard for regulators to understand?


I've been seriously contemplating on sending personal messages to regulators in order to attempt to educate them on crypto's. Starting with Ben Lawsky and his asinine Bitlicense.

The article is based on what "respectable" people want to listen.

[nizamcc]

Bitcoins alone are not in Money Laundering, but fiat too.
Why don't these people go and search whether their own fuckin' governments who are looting them, might be helping these mafias by sending Extortion and so-called protection monies to give space to terrorism?

Bitcoins are not controllable, that we can agree upon. But what about fiat? How the hell terrorists are able to take a grasp on these fiat currencies and where do they get this fiat from? Did anyone ever ask this to any governments?

[Amph]

they still think that bitcoin is anonymous, and they disregard the comparison with cash everytime, which is even more dangerous

they should ban cash first before even attempting to restrict bicoin, if they were really coherent whit what they want

^^^ This.
Cash is completely anonymous.
Nobody knows if person A made a deal with Person B that is to be paid in cash.
But if person A made a deal with person B which is to be paid in Bitcoins, it will be seen on the block chain, then everybody will know.

You're skewing the facts here to suit your argument. You can just as easily say bitcoin is anonymous too because you don't really know who sent it. I have just sent a bitcoin payment across the world to some terrorists. Please show me the transaction and my name. It would be difficult for me to transfer cash to them without leaving a paper trail or exposing my identity.

you are partially right, because they could always track you with ip, you need to mask it with tor, but even tor is not safe, is monitored, everything is actually, then you are forced to connect to a random wifi and choose another one everytime between each transaction, but this method  isn't free from be tracked back, too

[Elwar]

Money laundering laws are another way of saying "we want to track everything you do with your money, if you don't comply you support terrorists".

[nizamcc]

Money laundering laws are another way of saying "we want to track everything you do with your money, if you don't comply you support terrorists".

Not just support, but you are terrorists yourselves, this is what they claim. They think of themselves to be too smart and think the the ones who vote them are all fools.

[ticoti]

And money can be launder itself, Bitcoin is not bad by itself, it's people who makes it bad things with it, but as they do with FIAT
Nothing to see here

[Klestin]

You're skewing the facts here to suit your argument. You can just as easily say bitcoin is anonymous too because you don't really know who sent it. I have just sent a bitcoin payment across the world to some terrorists. Please show me the transaction and my name. It would be difficult for me to transfer cash to them without leaving a paper trail or exposing my identity.

When the terrorists convert that coin to fiat, the transaction history can be flagged.  If you have any sort of real-world tie to the coins sent, then you're boned.  It is possible to stay completely anonymous with Bitcoin.  It's non-trivial to do so, though.  A single misstep can expose your identity for every transaction.

[RodeoX]

I guess their concern is dictators, druglords, and terrorists moving money out of their numbered Swiss bank accounts. That is what Swiss banking is about now.

[sdmathis]

they still think that bitcoin is anonymous, and they disregard the comparison with cash everytime, which is even more dangerous

they should ban cash first before even attempting to restrict bicoin, if they were really coherent whit what they want

It doesn't matter if cash is more anonymous that Bitcoin. It doesn't matter that all transactions are recorded on the blockchain, do their claims that BTC is a too for money laundering. It doesn't matter that only a small portion of BTC transactions for illicit purposes and more crimes are omitted with cash worldwide than the entire Market Cap of Bitcoin. What does matter is that the general public, governments, and the press believes that all this anti-Bitcoin propaganda is true. Bitcoin will never be truly successful until we can somehow get out from under this cloud that has been put over us.

[MF Doom]

I guess their concern is dictators, druglords, and terrorists moving money out of their numbered Swiss bank accounts. That is what Swiss banking is about now.

So this is another wealthy elite against btc, cause it could cost them money.  Expect more attacks from these bankers on btc

[shulio]

Switzerland’s financial market regulator says the virtual currency Bitcoin needs to be treated as a serious medium for illicit activity like money laundering in a sign of the widening acceptance of the digital payment system.

Bitcoin’s ability to be used anonymously and internationally increases the risk it could play a role in terrorist financing, Finma, as the regulator is known, said in a February report on draft of its revised decree on money laundering. Handelszeitung reported Finma’s mention of Bitcoin earlier today.

Full article here http://www.bloomberg.com/news/articles/2015-05-06/bitcoin-must-be-seen-for-money-laundering-potential-finma-says

The article is seriously lacking in content.


Also, I am astounded at the ignorance of regulators when talking about crypto currencies. Yes ok it could be used for money laundering. But then again the transaction is recorded and downloaded into every wallet in existence. Eventually it needs to be converted to fiat.... is 1+1 =2 to hard for regulators to understand?


I've been seriously contemplating on sending personal messages to regulators in order to attempt to educate them on crypto's. Starting with Ben Lawsky and his asinine Bitlicense.

It is normal because people are afraid of things that they dont understand. Like the cavemen who are afraid of thunders and praised them as god. Bitcoin got nothing to do with the laundering, what they should watch on is the exchanger that traded bitcoin into fiat because that is where the money launder happens.

they still think that bitcoin is anonymous, and they disregard the comparison with cash everytime, which is even more dangerous

they should ban cash first before even attempting to restrict bicoin, if they were really coherent whit what they want

They would not want to ban cash because they can control it and it is much easier to track if you compare it to bitcoin.

[leopard2]

Obviously FINMA management has had a visit from certain "men in black" from EU and/or US who do not want Switzerland to become a Bitcoin haven. They have probably been told that accidents are horrible but they do happen. 

OR they are afraid that their $500 000 000 000 reserves in USD and EUR, could suffer even more losses if cryptocurrency takes over. Who knows.

Funny how  a good thing (BTC cannot be controlled by anyone but the key holder --> no bank runs, no capital controls, no third party has any control) is turned into a bad thing. True ownership is money laundering in newspeak.

Methinks some major global haircut thingy is coming and the powers that be, are preparing for it.

http://www.theguardian.com/business/economics-blog/2013/nov/05/moral-case-wealth-tax

The IMF calculates that a one-time 10% wealth levy, if introduced quickly and unexpectedly, could return many European countries to pre-crisis public debt/GDP ratios.

And it will not remain at 10%, the fiat bubble will be shrinked and a whole generation will lose their savings!!!!

[Daniel91]

they still think that bitcoin is anonymous, and they disregard the comparison with cash everytime, which is even more dangerous

they should ban cash first before even attempting to restrict bicoin, if they were really coherent whit what they want

It doesn't matter if cash is more anonymous that Bitcoin. It doesn't matter that all transactions are recorded on the blockchain, do their claims that BTC is a too for money laundering. It doesn't matter that only a small portion of BTC transactions for illicit purposes and more crimes are omitted with cash worldwide than the entire Market Cap of Bitcoin. What does matter is that the general public, governments, and the press believes that all this anti-Bitcoin propaganda is true. Bitcoin will never be truly successful until we can somehow get out from under this cloud that has been put over us.

You are right.
It seems that this money laundering accusation is very good excuse to convince people that bitcoin is something bad and that they should avoid it.
Banks and financial industry don't like bitcoin (BTC has the potential to take away their share of the profits of sending money between users), so I think that they are behind this negative propaganda about bitcoin.
It's really difficult question how to get out from such accusation.

[Whitehouse]

they still think that bitcoin is anonymous, and they disregard the comparison with cash everytime, which is even more dangerous

they should ban cash first before even attempting to restrict bicoin, if they were really coherent whit what they want

It doesn't matter if cash is more anonymous that Bitcoin. It doesn't matter that all transactions are recorded on the blockchain, do their claims that BTC is a too for money laundering. It doesn't matter that only a small portion of BTC transactions for illicit purposes and more crimes are omitted with cash worldwide than the entire Market Cap of Bitcoin. What does matter is that the general public, governments, and the press believes that all this anti-Bitcoin propaganda is true. Bitcoin will never be truly successful until we can somehow get out from under this cloud that has been put over us.

You are right.
It seems that this money laundering accusation is very good excuse to convince people that bitcoin is something bad and that they should avoid it.
Banks and financial industry don't like bitcoin (BTC has the potential to take away their share of the profits of sending money between users), so I think that they are behind this negative propaganda about bitcoin.
It's really difficult question how to get out from such accusation.

But regardless of their motive or agenda and like it or not bitcoin is a great tool to aid in money laundering or other criminal activities. It's likely one of the only ways criminals who have been prohibited from owning a bank account can safely store and move their money around. The benefits of bitcoin work both ways really good and bad, but it is here to stay and law enforcement really need to evolve along with it to punish those who break the law in serious ways with it.