Bitcoin Forum
May 23, 2019, 10:29:39 AM *
News: Latest Bitcoin Core release: 0.18.0 [Torrent] (New!)
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: How the blockchain technology could better address money laundering issues  (Read 309 times)
OliverChassa
Jr. Member
*
Offline Offline

Activity: 38
Merit: 2


View Profile
October 06, 2017, 08:49:49 AM
 #1

There have been lately a lot of articles about the risks of money-laundering and ransomware attacks flourishing around the world, mostly thanks to crypto-currencies because of the anonymity they provide.

Fortunately enough, some people are looking at the bright side and suggesting possibilities about how the blockchain technology could be improved and how it could actually better serve anti money-laundering regulations than paper money (read https://bravenewcoin.com/news/blockchain-could-provide-the-answer-to-the-anti-money-laundering-issues-that-crypto-currencies-face/ ).
In fact, since there is only one type of entry and exit point, the identification of the users could be required at the beginning and end of a transaction through their digital wallet (not all countries are requiring it so far). Besides, cryptocurrencies are almost impossible to forge.
Furthermore, the blockchain protocol foresees that a block is only added to the ledger only when a required number of miners has verified the transaction.
Therefore, on one hand, the protocol could be revised to limit transactions to "Know Your Customer" (KYC) verified wallets only. On the other hand, anti money-laundering risks, alerts and support mechanism could be integrated within the cryptosystem.

The blockchain technology being something relatively new and developping quickly, the current anti money-laundering is of course not suitable and regulations are not evolving at the same pace as new technologies. Nothing new about that. But as the article suggests it, there are solutions to improve the blockchain technology as money-laundering issues are concerned. The challenges will be finding a concensus among key players in the industry to find a suitable solution as well as enforcing additionnal regulations.
1558607379
Hero Member
*
Offline Offline

Posts: 1558607379

View Profile Personal Message (Offline)

Ignore
1558607379
Reply with quote  #2

1558607379
Report to moderator
1558607379
Hero Member
*
Offline Offline

Posts: 1558607379

View Profile Personal Message (Offline)

Ignore
1558607379
Reply with quote  #2

1558607379
Report to moderator
1558607379
Hero Member
*
Offline Offline

Posts: 1558607379

View Profile Personal Message (Offline)

Ignore
1558607379
Reply with quote  #2

1558607379
Report to moderator
PLAY OVER 3000 GAMES
LIGHTNING FAST WITHDRAWALS
PLAY NOW
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1558607379
Hero Member
*
Offline Offline

Posts: 1558607379

View Profile Personal Message (Offline)

Ignore
1558607379
Reply with quote  #2

1558607379
Report to moderator
1558607379
Hero Member
*
Offline Offline

Posts: 1558607379

View Profile Personal Message (Offline)

Ignore
1558607379
Reply with quote  #2

1558607379
Report to moderator
1558607379
Hero Member
*
Offline Offline

Posts: 1558607379

View Profile Personal Message (Offline)

Ignore
1558607379
Reply with quote  #2

1558607379
Report to moderator
HeRetiK
Legendary
*
Offline Offline

Activity: 1106
Merit: 1049


the forkings will continue until morale improves


View Profile
October 06, 2017, 11:05:45 AM
 #2

What would be the point of that? At that point you may as well just use banks or PayPal.

Apart from that, as long as there are crypto-currencies that don't abide to these regulations, the ransomware industry will simply use these instead.

RGBKey
Hero Member
*****
Offline Offline

Activity: 840
Merit: 629


rgbkey.github.io/pgp.txt


View Profile WWW
October 06, 2017, 12:22:24 PM
 #3

I can't see anybody that understands the.point of Bitcoin supporting this, ever. This totally goes against what the network is for. This reminds me of when people were thinking about implementing coin blacklists. In a sense, you're proposing a coin whitelist, which is evern worse and sounds like a dystopian nightmare brought into crypto.
KingScorpio
Sr. Member
****
Offline Offline

Activity: 770
Merit: 282



View Profile WWW
October 06, 2017, 01:09:07 PM
 #4

There have been lately a lot of articles about the risks of money-laundering and ransomware attacks flourishing around the world, mostly thanks to crypto-currencies because of the anonymity they provide.

Fortunately enough, some people are looking at the bright side and suggesting possibilities about how the blockchain technology could be improved and how it could actually better serve anti money-laundering regulations than paper money (read https://bravenewcoin.com/news/blockchain-could-provide-the-answer-to-the-anti-money-laundering-issues-that-crypto-currencies-face/ ).
In fact, since there is only one type of entry and exit point, the identification of the users could be required at the beginning and end of a transaction through their digital wallet (not all countries are requiring it so far). Besides, cryptocurrencies are almost impossible to forge.
Furthermore, the blockchain protocol foresees that a block is only added to the ledger only when a required number of miners has verified the transaction.
Therefore, on one hand, the protocol could be revised to limit transactions to "Know Your Customer" (KYC) verified wallets only. On the other hand, anti money-laundering risks, alerts and support mechanism could be integrated within the cryptosystem.

The blockchain technology being something relatively new and developping quickly, the current anti money-laundering is of course not suitable and regulations are not evolving at the same pace as new technologies. Nothing new about that. But as the article suggests it, there are solutions to improve the blockchain technology as money-laundering issues are concerned. The challenges will be finding a concensus among key players in the industry to find a suitable solution as well as enforcing additionnal regulations.



i wonder when will the communal banker cartells adress their exclusive elite abusal problem, i mean having a parliament constantly debating doesnt solves the problem of a communal banker cartel (that influences and bans all other cartels) and its surrounding elite to buy everything and own everything while everyone else is constantly in debt and has to sell his time, for the money they can print out of thin air.

communal currencies have much bigger problems, the mass media ownage of the banking cartel is what is hidding the painful reality from mass awareness, and people constantly feeling in guild of justifiing "money laundering issues" on crypto currencies just look at the dirt that glues on communal currencies, and reality gets you.....

and i am not even going to start mentioning the wars that have been started for the sake of moving populations to get them into a very needy situation in those "new communities they live in"

regards

Scorpio

ChipMixer
Sr. Member
****
Offline Offline

Activity: 341
Merit: 251


ChipMixer.com | ChipMixerwzxtzbw.onion


View Profile WWW
October 06, 2017, 07:44:20 PM
 #5

"Money laundering" is a crime made-up by governments that spy on their citizens. Some people believe that it is about drugs, terrorism, human trafficing and crimes against humanity. It is not. Money laundering is defined as using money that your government does know nothing about. You are selling bitcoins at LBC? You are money laundering. You do graphic design and do not pay the cut to your country? That is money laundering.

Whitelisting wallets is the most horrible thing you may do to cryptocurrency. When you give power to erase value, your currency loses its value. We trust bitcoin, because it is based on math. When you add central power that allows people to use it, you no longer need blockchain, crypto. You do not need anything. You made your own PayPal.

karmakeddon
Sr. Member
****
Offline Offline

Activity: 350
Merit: 250


Free Crypto in Stake.com Telegram t.me/StakeCasino


View Profile
October 06, 2017, 11:25:36 PM
 #6

This idea of whitelisting wallets goes against the very core idea of bitcoin, which is to be anonymous. The price of all crypto currencies will surely plummet. It is not a question of how but a question of when it will plummet. For all we know, those "key players" would just want to disrupt the current market and bring it down so that they can buy up more coins then tell the public that the project is not "feasible". This will deal a very big blow towards crypto currencies, especially bitcoin.

carlfebz2
Hero Member
*****
Offline Offline

Activity: 1134
Merit: 522


★Bitvest.io★ Play Plinko or Invest!


View Profile
October 07, 2017, 03:04:36 AM
 #7

"Money laundering" is a crime made-up by governments that spy on their citizens. Some people believe that it is about drugs, terrorism, human trafficing and crimes against humanity. It is not. Money laundering is defined as using money that your government does know nothing about. You are selling bitcoins at LBC? You are money laundering. You do graphic design and do not pay the cut to your country? That is money laundering.

Whitelisting wallets is the most horrible thing you may do to cryptocurrency. When you give power to erase value, your currency loses its value. We trust bitcoin, because it is based on math. When you add central power that allows people to use it, you no longer need blockchain, crypto. You do not need anything. You made your own PayPal.
Very well said.In short you would just need to create another centralized system on where you do have the full control of funds either incoming or outgoing transaction.Whitelisting is nonsense since not all transactions in crypto is purely focused on illegal stuffs. It can be used but on just small proportion.



.
.BIG WINNER!.
[15.00000000 BTC]


▄████████████████████▄
██████████████████████
██████████▀▀██████████
█████████░░░░█████████
██████████▄▄██████████
███████▀▀████▀▀███████
██████░░░░██░░░░██████
███████▄▄████▄▄███████
████▀▀████▀▀████▀▀████
███░░░░██░░░░██░░░░███
████▄▄████▄▄████▄▄████
██████████████████████

▀████████████████████▀
▄████████████████████▄
██████████████████████
█████▀▀█▀▀▀▀▀▀██▀▀████
█████░░░░░░░░░░░░░████
█████░░░░░░░░░░░░▄████
█████░░▄███▄░░░░██████
█████▄▄███▀░░░░▄██████
█████████░░░░░░███████
████████░░░░░░░███████
███████░░░░░░░░███████
███████▄▄▄▄▄▄▄▄███████

██████████████████████
▀████████████████████▀
▄████████████████████▄
███████████████▀▀▀▀▀▀▀
███████████▀▀▄▄█░░░░░█
█████████▀░░█████░░░░█
███████▀░░░░░████▀░░░▀
██████░░░░░░░░▀▄▄█████
█████░▄░░░░░▄██████▀▀█
████░████▄░███████░░░░
███░█████░█████████░░█
███░░░▀█░██████████░░█
███░░░░░░████▀▀██▀░░░░
███░░░░░░███░░░░░░░░░░

██░▄▄▄▄░████▄▄██▄░░░░
████████████▀▀▀▀▀▀▀██
█████████████░█▀▀▀█░███
██████████▀▀░█▀░░░▀█░▀▀
███████▀░▄▄█░█░░░░░█░█▄
████▀░▄▄████░▀█░░░█▀░██
███░▄████▀▀░▄░▀█░█▀░▄░▀
█▀░███▀▀▀░░███░▀█▀░███░
▀░███▀░░░░░████▄░▄████░
░███▀░░░░░░░█████████░░
░███░░░░░░░░░███████░░░
███▀░██░░░░░░▀░▄▄▄░▀░░░
███░██████▄▄░▄█████▄░▄▄

██░████████░███████░█
▄████████████████████▄
████████▀▀░░░▀▀███████
███▀▀░░░░░▄▄▄░░░░▀▀▀██
██░▀▀▄▄░░░▀▀▀░░░▄▄▀▀██
██░▄▄░░▀▀▄▄░▄▄▀▀░░░░██
██░▀▀░░░░░░█░░░░░██░██
██░░░▄▄░░░░█░██░░░░░██
██░░░▀▀░░░░█░░░░░░░░██
██░░░░░▄▄░░█░░░░░██░██
██▄░░░░▀▀░░█░██░░░░░██
█████▄▄░░░░█░░░░▄▄████
█████████▄▄█▄▄████████

▀████████████████████▀




Rainbot
Daily Quests
Faucet
olushakes
Sr. Member
****
Offline Offline

Activity: 476
Merit: 250


View Profile
October 07, 2017, 02:11:41 PM
 #8

The block chain will.go along way in reducing money laundering because everything will be public each amount in individual wallets can be seen but the only thing that could stand as a concern is the issue of mixing which I believe its also not an issue because a lot of money launderers prefer to go with cash rather than anything electronic. But at the same time, its an avenue to be tapped into only if government is ready to explore all options.
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!