Why do people need to use Bitcoin for Money laundering?

[ralph_0608]

since transaction is ecrypted and untraceable it is easy for money launderers to purchase bitcoin and encash it since it doesn't leave footprintsvthat lead to the identity of buyer and seller that is why government are trying to regulate crypto currency to minimize this kind of activity. and KYC  is one of the pre requisite in some other countries if you want to buy crypto coins.

[ainajane11]

Between 2004 and 2010, HSBC laundered Billions of Dollars for the Mexican Drug cartels and nobody blinked an eye. After

7 years of doing this, they got busted and they paid US$1.9bn in fines. {This could be recovered in profits, within a few

weeks} Most people saw this as a slap on the wrist for the people who were involved with this. Not one person working for the

Bank got jail time for doing this.    https://observer.news/featured/5-years-ago-hsbc-fined-record-us1-9bn/

Ross Ulbricht, was sentenced to life in prison without parole for creating and running Silk Road, which allegedly facilitated

the sale of $250 million worth of drugs.

                                    Why are we seeing such double standards, when Bitcoin is involved?

I think it's because Bitcoin have the most influenced thing in investing which many people abuse it and use it for scamming.

[bachus]

The bitcoin is only relatively anonymous and therefore very rarely used for money laundering. According to studies, bitcoin for illicit purposes is used in no more than ten percent of cases. Now there are many coins with a high level of anonymity - Coin Monero, ZCash, Dash, and others. These are those that are used more often by criminals. In this regard, the indicated coins in Japan were banned for circulation.

[kingdom2710]

All governments do not like bitcoin. Counterfeit money laundering by bitcoin has invented the banks to fight its main competitors. Thus the phrase "too big to fail, too large to be imprisoned". If the United States blocks all bankers who have done something wrong and fined the bank the amount corresponding to their crime, they will shoot themselves in the head.

[gasparyu]

The use of digital money will a double aedged sword. It's anonimity do make it a perfect currency for criminals as their identities will be impossible to be discovered.

[p4npos]

Bad people and cheats will always try to exploit any anything and look for their adavantage. Money laundering is an effective way to hide their corruption. They are using the cryptocurrency platform to hide their black money from the governmental authorities.

[tsmc103]

bitcoin money laundering is possible because its transaction is not traceable and no one know where money have send. because of this things all countries governments are hating this currency if governments want then they can regulate this currency and save bitcoin so no one can do this kind of illegal activities.

[BigBos]

Bad people and cheats will always try to exploit any anything and look for their adavantage. Money laundering is an effective way to hide their corruption. They are using the cryptocurrency platform to hide their black money from the governmental authorities.

well, we know that most people who are corrupt must be looking for ways to keep them unknown, and remain secret. bitcoin has advantages in fast, and anonymous transactions. so, there are some people doing money laundering in various ways to keep them mysterious.

[aryani]

Those who use bitcoin for money laundering know for sure that their actions will not be known to law enforcement and it will be difficult for law enforcement to know the data of suspicious transaction owners in bitcoin, because in the process of making bitcoin accounts and bitcoin ownership many people use anonymous, so it will not be known who exactly the owner of the account. Bitcoin transaction data can be seen and known, but the owner of the account will be difficult to know.

[diytho]

because in bitcoin has a system that is hard to hack, money laundering in bitcoin is the right step because bitcoin does not have to or is not obliged to use the person's own account. bitcoin purchase is also very easy, so the money launderers are very free to do it. in bitcoin can not be detected that it was money laundering or not.

[nazaididuan1]

Bitcoin is not completely anonymous, and all transfer information is publicly available on the whole network! In the blockchain network, as long as it has happened, the network still exists, and the evidence is clear as long as it is. People who have done bad things with Bitcoin before can be checked!

[jgaspar]

Between 2004 and 2010, HSBC laundered Billions of Dollars for the Mexican Drug cartels and nobody blinked an eye. After

7 years of doing this, they got busted and they paid US$1.9bn in fines. {This could be recovered in profits, within a few

weeks} Most people saw this as a slap on the wrist for the people who were involved with this. Not one person working for the

Bank got jail time for doing this.    https://observer.news/featured/5-years-ago-hsbc-fined-record-us1-9bn/

Ross Ulbricht, was sentenced to life in prison without parole for creating and running Silk Road, which allegedly facilitated

the sale of $250 million worth of drugs.

                                    Why are we seeing such double standards, when Bitcoin is involved?

Yes, bitcoin is really used for money laundering. But less than 1% of transactions (for 2013-2016) with bitcoins are accounted for coins of illicit origin. For comparison: from 2% to 5% of world GDP (or $ 0.8 to $ 2 trillion) is laundered annually.

[tungnhapchanvui]

Because It’s digital, so is an easily convertible way of acquiring and transferring cyber-crime revenue.

[interestinglie]

Because digital currency platforms are truly anonymous. It is really convenient  for money laundering

[beinformed]

because Bitcoins are not linked to a person’s identity and only depend on the private key connected to the Bitcoin account. Since Bitcoin is a decentralized network, there is no central record-keeping mechanism that governments or financial institutions can after.

[nonconformist]

The most used currency for money laundering is the US dollar not Bitcoin. They just wanted to bring down bitcoin or at the very least regulate it because they are protecting their interest. They have so much money in US dollar. They also wanted to bring down btc so that they can buy it cheaply.

[cryptokia]

Actually, people does not really need Bitcoin to do any form of money laundering. They just see Bitcoin as a great medium to hide the money they laundered since only a few would think that the laundered money were converted to Bitcoin also people can easily hide their connection to a Bitcoin wallet.

All people in the world want to be independent of the government. So they're looking for ways to realize it and bitcoin is one of them. You can earn and be safe.

[Vineeta2october]

Bitcoin transactions are publicly logged in the "block chain" - a central feature of the Bitcoin security system. Furthermore, a Bitcoin address can be traced back to an IP address.

[mekie]

Money laundering happened before Bitcoin and will continue long after it, While ever there is a requirement to move money illicitly then someone will find a way to facilitate it, Bitcoin is just another channel-admittedly a more sophisticated and possibly secure method.   

[Rustandy]

Because the instrument caused the risk due to the absence of regulators or supervising administrators.