pruchol22 (OP)
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March 29, 2017, 07:53:30 PM |
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What does cryptocurrency money laundering means??? examples please... Thank you
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AgentofCoin
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March 29, 2017, 08:17:35 PM |
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What does cryptocurrency money laundering means??? examples please... Thank you
The concept could mean different things to different people, but basically would be something along the following lines: "Taking or allowing cash/credit that was used from a crime/illegal act/theft and using that to purchase either bitcoins or altcoins, in order to hide the links from the original crime/ illegal act/theft. For example, I steal 10,000 USD from a bank, I then buy bitcoins with all the money on localbitcoins or with other p2p cash trades. Eventually, I will have around 10,000 USD converted into bitcoins. I then use those bitcoins to buy other altcoins to mix them more, possibly monero, and then reconvert back into bitcoins, where I now sell those bitcoins on localbitcoins or other p2p cash trades. When I receive new money that is not associated with the original 10,000 USD, I have "laundered" that money. Besides committing the original crime, laundering would be an additional crime. |
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pruchol22 (OP)
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March 29, 2017, 08:55:08 PM |
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ok so if u didnt steel money... just invested it in bitcoin then traded for exmaple: monero or dash and sold it for a lot more is not considered money laundry? am i correct?
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FlamingFingers
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March 29, 2017, 09:02:25 PM |
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ok so if u didnt steel money... just invested it in bitcoin then traded for exmaple: monero or dash and sold it for a lot more is not considered money laundry? am i correct?
No, it is not considered money laundry. It's just an investing/trading action, but instead of investing/trading on Forex, for example, you invested/traded in digital currencies. Of course, if your money is hard-earned. |
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olubams
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March 29, 2017, 09:04:45 PM |
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ok so if u didnt steel money... just invested it in bitcoin then traded for exmaple: monero or dash and sold it for a lot more is not considered money laundry? am i correct?
It will only be considered money laundering to the best of my knowledge if you are trying avoid paying the necessary dues to government. There is a laws that says you can't carry more than $10000 or even transfer more than that at with the exception that when you do, you must be ready to explain where it came from all else it will be regarded as money laundering so its all about disclosure and what the law says... |
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AgentofCoin
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March 29, 2017, 11:03:35 PM
Last edit: March 29, 2017, 11:19:31 PM by AgentofCoin |
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ok so if u didnt steel money... just invested it in bitcoin then traded for exmaple: monero or dash and sold it for a lot more is not considered money laundry? am i correct?
No, it is not considered money laundry. It's just an investing/trading action, ... Of course, if your money is hard-earned. FlamingFingers is correct. If the money you use for crypto trading is your money from legal means, then it usually does not fall under "money laundering". In this case, money laundering only exists because it is NOT your money but you are trying to hide it from any criminal investigators. ok so if u didnt steel money... just invested it in bitcoin then traded for exmaple: monero or dash and sold it for a lot more is not considered money laundry? am i correct?
It will only be considered money laundering to the best of my knowledge if you are trying avoid paying the necessary dues to government. ... you must be ready to explain where it came from [or] else it will be regarded as money laundering so its all about disclosure and what the law says... Olubams is correct here as well, but for a different reason than above. The distinction is that if you need to pay taxes on some type of your money and instead you do not pay your taxes and invest that money into cryptocoins in order to help hide this money and prevent "pull backs" and etc., then you are tax evading by money laundering. In this case, money laundering exists because it is your money but you are trying to hide the taxable assets from your government. **Also, as a reminder, in some jurisdictions, you do not need to pay any taxes on your cryptocoins UNLESS you convert your cryptocoins back into fiat. It is your responsibility to keep track of your gains and losses over the years, and if you "cash out" your coins for fiat, you are required by law to declare your gain or losses in that year's taxes. |
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Amph
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March 31, 2017, 06:02:19 AM
Last edit: April 05, 2017, 06:52:08 AM by Amph |
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ok so if u didnt steel money... just invested it in bitcoin then traded for exmaple: monero or dash and sold it for a lot more is not considered money laundry? am i correct?
you can effectively make the first case proposed in this one you mentioned, i mean steal the money from a bank, buy bitcoin with those, convert them with a mixer to another altcoin, and leave all the trace back this is money laundering but none will ever know about it because there is no trace thanks to some anonymous coins, this is the big problem the government want to fight |
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btcdiggingmaster
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March 31, 2017, 10:04:43 AM |
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I don't agree with your words because cryptocurrency is same like Forex trading, why I don't know many people keep talking about cryptocurrency are money laundering, if you are good at trading then you will make good money. Only a few cryptocurrency are cheating people by launching ICO, this makes people think that cryptocurrency is money laundering.
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Qartada
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March 31, 2017, 11:03:13 AM |
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Buying Bitcoin and spending Bitcoin is obviously not money laundering, governments tend to be concerned because it's very easy to do money laundering with Bitcoin (which it is, you just buy some Bitcoin, put it in Bitmixer or a gambling site, cash it out and boom it's clean money).
If you're not actually doing anything illegal, the government doesn't care. If you are, good luck as long as it's not hurting anyone, and you would usually get away with it. Money laundering just means covering your tracks and trying to get money that wasn't involved in crimes so that the crimes can't be traced back to you.
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pruchol22 (OP)
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March 31, 2017, 09:30:49 PM |
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ok... so if i earned my money legally....( worked for it) and decided to invest few $ in bitcoin, then traded for other coins, then (ex. sell it for a lot more and made few $ then) it is legal... correct? it is considered trading.
is this also legal in state of new york?
thank you all
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audaciousbeing
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April 01, 2017, 04:32:38 PM |
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ok... so if i earned my money legally....( worked for it) and decided to invest few $ in bitcoin, then traded for other coins, then (ex. sell it for a lot more and made few $ then) it is legal... correct? it is considered trading.
is this also legal in state of new york?
thank you all
However, because in the literal sense it is legal afterall stock trading is also legal but technically, it might not be legal especially in a case where the law is not fully plain about crypto-currency and there is no way they can really determine your income from such trade to understand whether you are disclosing the right amount of income or not should in case you decide you want to pay tax or not or when IRS is ready to investigate your source of money. |
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Qartada
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April 02, 2017, 10:09:05 AM |
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ok... so if i earned my money legally....( worked for it) and decided to invest few $ in bitcoin, then traded for other coins, then (ex. sell it for a lot more and made few $ then) it is legal... correct? it is considered trading.
is this also legal in state of new york?
thank you all
Anything related to exchanges between cryptocurrencies is legal in America as long as the activity you are doing with them is itself legal. Money laundering is not legal. |
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1.btcwonder
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April 05, 2017, 08:09:09 AM |
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Bitcoin or other cryptocurrencies are not considered as money laundering because you have to pay taxes at the time of the transaction. It is considered money laundering only if you are annoying to evade paying taxes to the authorities.
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Kawasanz
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July 01, 2017, 01:13:58 PM |
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Bitcoin currency can basically be used for various transactions. For example for legal transactions like at wordpress.com, virgin galatic airways, republikhost.com, and various social donations such as to wikileaks. But it can also be used for illegal interests that are larger in the international portion.Such illegal acts include money laundering, gambling, illicit drugs, and even protitution.
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alexrose2699
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July 01, 2017, 02:08:45 PM |
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It means taking or allowing cash/credit that was used from a crime/illegal act/theft and using that to purchase either
bitcoins or altcoins, in order to hide the links from the original crime/
illegal act/theft.
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RamBahadur.Gurung
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July 02, 2017, 04:39:13 PM |
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In my understanding, it is tax evasion using crypto-coins or storing of unaccounted money (i.e black money) in crypto-coin format. Recently, there was a demonetization exercise in India. A lot of unaccounted money holders were rushing to convert their cash to BTC.
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Love!
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July 02, 2017, 05:39:03 PM |
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The only difference between trading and laundering, is that trading starts with money that was not gotten by illegal means.
If you never do anything illegal, you have nothing to worry about.
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darkangel11
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July 02, 2017, 07:23:57 PM |
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The only difference between trading and laundering, is that trading starts with money that was not gotten by illegal means.
If you never do anything illegal, you have nothing to worry about.
If it were only that easy. The line between legal and illegal is very thin. I advise you to read about some cases of illegal money transmitting. People who were trading BTC were even put in jail because they were operating without a license and they didn't even know they needed one, since BTC wasn't treated as money and the laws were just being made. IMO it was an abuse on the government's part, but we can complain after a fact and it won't change anything if we're already behind bars. |
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countryfree
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July 02, 2017, 10:54:39 PM |
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For example, I steal 10,000 USD from a bank, I then buy bitcoins with all
the money on localbitcoins or with other p2p cash trades. Eventually, I will
have around 10,000 USD converted into bitcoins. I then use those bitcoins to buy
other altcoins to mix them more, possibly monero, and then reconvert back into
bitcoins, where I now sell those bitcoins on localbitcoins or other p2p cash trades.
When I receive new money that is not associated with the original 10,000 USD,
I have "laundered" that money.
Besides committing the original crime, laundering would be an additional crime.
Actually, there's no laundering in your scheme. It's dirty money at the beginning, and it's still dirty at the end. Mixing is useless. To launder the money, it would require to make it pass through some kind of legitimate business. Imagine you create a carpet cleaning company, or that you are a mechanic making oil changes. Your income for a given month is $1,000 but you add the $10,000 in BTC, and you fill tax forms telling your income was $11,000. This is money laundering, because the money now looks like normal income from a registered company. |
I used to be a citizen and a taxpayer. Those days are long gone.
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orions.belt19
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July 03, 2017, 01:15:21 PM |
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I'm guessing this means the use of a cryptocurrency (like Bitcoin etc.) to money launder. For example, I retrieved a huge amount of money like $1,000 through illegal means. Money laundering means concealment of the origins by the means of transferring. So one may exchange the $1,000 to a cryptocurrency like Bitcoin so that it won't be traced from its illegal source, hence money laundering. This is just from my understanding, please correct me if I'm wrong!
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