Bitcoin used to do money laundering - will it become a huge problem?

[-Tx-Rider]

I don't find it a huge problem right now. Bitcoin exchanges are mostly regulated and there is mostly a limit to the amount that can be traded. This is an disadvantage for those trying to do money laundering. Even with localbitcoins, there is low liquidity and some would even require an ID.

[gkv9]

Not just Bitcoins, but all types of currencies are being used for money laundering...
Does that mean that BTC alone should be accused for the same???

[romero121]

Not just Bitcoins, but all types of currencies are being used for money laundering...
Does that mean that BTC alone should be accused for the same???

Each and every currencies are used in money laundering, In one or other way who did can be found.
In bitcoin no identity is required which makes it ease for money laundering

[owm123]

Not just Bitcoins, but all types of currencies are being used for money laundering...
Does that mean that BTC alone should be accused for the same???

fiat money are controlled by banks and governments. So they dont care if its being used for money laudering or illegal things. Bitcoin is out of their control, and take financial power from banks and governments. Thus they need to fight. They just scared of loosing their power now. Money laudering, illegal things are just an excuse.

[OnTheMF]

Not just Bitcoins, but all types of currencies are being used for money laundering...
Does that mean that BTC alone should be accused for the same???

Each and every currencies are used in money laundering, In one or other way who did can be found.
In bitcoin no identity is required which makes it ease for money laundering

This is true that not even Bitcoins there are many other currencies in the world are used to do money laundering and its going on from the old times. Which will not be changed and may be bitcoins will be the easiest way to transfer their money.

[DimensionZ]

Not just Bitcoins, but all types of currencies are being used for money laundering...
Does that mean that BTC alone should be accused for the same???

That's true but the pseudo-anonymity of Bitcoin is a desired feature by the money launderers because it's harder to detect and investigate into.

[Windpower]

I don't find it a huge problem right now. Bitcoin exchanges are mostly regulated and there is mostly a limit to the amount that can be traded. This is an disadvantage for those trying to do money laundering. Even with localbitcoins, there is low liquidity and some would even require an ID.

I don't think that criminals have started Bitcoin laundering. Fiat is still the best for laundering.

[Windpower]

Not just Bitcoins, but all types of currencies are being used for money laundering...
Does that mean that BTC alone should be accused for the same???

That's true but the pseudo-anonymity of Bitcoin is a desired feature by the money launderers because it's harder to detect and investigate into.

But, criminals still use payment processor such as western union or paypal because fiat can be used almost everywhere.
Even pseudo-anonymity of bitcoin is really handy feature, but you can't spend it anywhere (yet)

Yeah that's true. Criminals these days don't use Bitcoin, they use Paypal or banks.

[Snorek]

And this argument of 'bitcoin being used by bad guys' is quoted by people who believe bitcoin simply must change to bring it in line with other payment methods.
This unfortunately means adding identity information to bitcoin transactions and/or making it possible to blacklist funds. This eventuality will be real if we want to stay with bitcoin.
It will be either this of end of BTC.

[nichu]

dont expect dump people doing these kind of acts, they will find new ways to launder money no matter what and you cant complain one system against the other .

[MyBTT]

dont expect dump people doing these kind of acts, they will find new ways to launder money no matter what and you cant complain one system against the other .

That is true. Criminals are always trying to find new ways of committing crimes. And now they have Bitcoin.

[arbitrage]

Bitcoin was already been used on bad way on Silk Road..
And i don't think they will ban bitcoin,
they gonna watch transactions and charge those who commit crimes and that is all.

[n2004al]

Whats your thought on this?

For a lot of criminals Bitcoins are the perfect tool to launder money or not? Almost no trace but still they have to explain how they got the money once they convert it back into dollars....
Will this become (or already is) a problem? I'm thinking that the anonymity will be a problem for a lot of governments once BTC becomes a well know payment method.

Cannot be possible. Every exchange whenever it could be must have the data of all the customers who want to make big amounts of change. The few amounts cannot serve for laundering because are nothing for that who want to "bleach" money. While if want to change big amounts is easily identifiable because of conditions above told and must be fulfilled by law by every exchange. So any kind of risk for bitcoin. To not tell that the regulation of it will reinforce (or have already reinforced there where is regulated) the rules against this kind of activity.

It's actually not even difficult for a world traveler (which I assume most criminals are).

First go to Panama and open a bank account at multibank. https://www.multibank.com.pa/en/private-banking/default.htm   You don't really need to go to Panama but it probably makes it easier.

Use your new account to purchase MoneyPolo prepaid Mastercards in $25,000 increments.  https://moneypolo.com/int-en/products/prepaid-cards/ Open an account at BTCe https://btc-e.com and fund it using the MoneyPolo cards. Use the BTCe website to buy bitcoins and withdraw them to your personal wallet. Use the Bitcoin to buy anything from real estate to luxury cars and planes.

The first part of your post is very clear and I accept it as it is without doubts. But I cannot understand what are the increments and where are found the money to buy this kind of things which must have $25 000 value. Cannot be bought such amount of value without money. Where are and in which way are made ready to realize such kind of bought? You tell that the account at Panama can be open even without going there. So this account must be founded with money. In which way these money go there.

This is the first thing. The second one (and for this I am not sure so might be even not correct) are you sure that btc-e doesn't ask personal data when are in "game" such kind of amounts?

And now the third. I have not this your conviction that with bitcoin can be realized such big things like you believe and write in your posts. The use and the acceptance of bitcoin is yet very limited and someone who want to use the money in every way him want, cannot be satisfied if have not the normal currency on his hands.

[owm123]

Bitcoin was already been used on bad way on Silk Road..
And i don't think they will ban bitcoin,
they gonna watch transactions and charge those who commit crimes and that is all.

as knowledge that bitcoin is not anonymous is spreading, criminals will start using bitcoin in a way to increase their anonymity. Subsequently, it will be more difficult to watch transactions and fully deanonymize users.

[n2004al]

dont expect dump people doing these kind of acts, they will find new ways to launder money no matter what and you cant complain one system against the other .

That is true. Criminals are always trying to find new ways of committing crimes. And now they have Bitcoin.

Bitcoin can be used as a main currency only a Deep Web. In every other place its status is the same with all the other kind of currencies. It is not only bitcoin which is used by criminals. Even, they mainly use other money and not bitcoin because the use of the other money is much more spread than bitcoin. That which can be assured using bitcoin is much mess than that which can be fulfilled with the other money. And this proportion condition even the use of it compared to the other currencies. A criminal don't ask for bitcoin. He ask for that kind of money which help him more in the achievement of his aim. And no one can prove that this currency is bitcoin. Cannot be proved such thing. There are hundred and hundred criminals that make crimes and are free. Who knows what kind of money is preferred by them? They are free and cannot be known what they think until will be captured by the law. To not tell even that it is very hard to be proved that all those in jail have told the true about this question (if asked).

[QuestionAuthority]

Whats your thought on this?

For a lot of criminals Bitcoins are the perfect tool to launder money or not? Almost no trace but still they have to explain how they got the money once they convert it back into dollars....
Will this become (or already is) a problem? I'm thinking that the anonymity will be a problem for a lot of governments once BTC becomes a well know payment method.

Cannot be possible. Every exchange whenever it could be must have the data of all the customers who want to make big amounts of change. The few amounts cannot serve for laundering because are nothing for that who want to "bleach" money. While if want to change big amounts is easily identifiable because of conditions above told and must be fulfilled by law by every exchange. So any kind of risk for bitcoin. To not tell that the regulation of it will reinforce (or have already reinforced there where is regulated) the rules against this kind of activity.

It's actually not even difficult for a world traveler (which I assume most criminals are).

First go to Panama and open a bank account at multibank. https://www.multibank.com.pa/en/private-banking/default.htm   You don't really need to go to Panama but it probably makes it easier.

Use your new account to purchase MoneyPolo prepaid Mastercards in $25,000 increments.  https://moneypolo.com/int-en/products/prepaid-cards/ Open an account at BTCe https://btc-e.com and fund it using the MoneyPolo cards. Use the BTCe website to buy bitcoins and withdraw them to your personal wallet. Use the Bitcoin to buy anything from real estate to luxury cars and planes.

The first part of your post is very clear and I accept it as it is without doubts. But I cannot understand what are the increments and where are found the money to buy this kind of things which must have $25 000 value. Cannot be bought such amount of value without money. Where are and in which way are made ready to realize such kind of bought? You tell that the account at Panama can be open even without going there. So this account must be founded with money. In which way these money go there.

This is the first thing. The second one (and for this I am not sure so might be even not correct) are you sure that btc-e doesn't ask personal data when are in "game" such kind of amounts?

And now the third. I have not this your conviction that with bitcoin can be realized such big things like you believe and write in your posts. The use and the acceptance of bitcoin is yet very limited and someone who want to use the money in every way him want, cannot be satisfied if have not the normal currency on his hands.

Large amounts of cash are what is being laundered. They "find the money" as you say, by selling drugs or human trafficking or illegal arms trading or a million other naughty things.

You can open a BTCe account with fake info. Trust me, they don't really care (you know they're not in the USA, right?).

Sorry, I'm not really sure what you mean by the third thing.

[Malsetid]

Not just Bitcoins, but all types of currencies are being used for money laundering...
Does that mean that BTC alone should be accused for the same???

That is a good argument. I think the US dollar is the most widely used money laundering tool. It is still the number one currency.

[Struble]

Its true but it will not be a problem because it happens at any currency there is available on the market,
there is always a backdoor.
With every currency there is so it would not become a big problem in the future.

[pereira4]

I don't find it a huge problem right now. Bitcoin exchanges are mostly regulated and there is mostly a limit to the amount that can be traded. This is an disadvantage for those trying to do money laundering. Even with localbitcoins, there is low liquidity and some would even require an ID.

But the amounts are not cumulative, so you can slowly take your BTC out of an exchange like Poloniex using a fake name (since they only require your name and you can put a fake one) and then every month you get your BTC or whatever out without no one realizing. And if they start being cunts you can always go to another exchange that will not spy on your wealth.

[Raimonn]

Money is laundered with bitcoins and with all kind of money, this is one problem difficult to solve. You can use prepaid phone cards, amazon cards, or dollar notes to launder your money. Its a problem that existed before bitcoin.