Why do people need to use Bitcoin for Money laundering?

[aileen393332xe5157]

I think that the nongovernmental nature, which is not required to use real identity when trading Bitcoin has made Bitcoin exploited in money laundering. This is one of the reasons why many governments have warned about Bitcoin.

[cpkozak]

All bitcoin transactions are completely anonymous and can not be reversed, so for salespeople, they can be assured of fraud. Because of the anonymity of bitcoin and not Who controls, criminals can use this currency as a mode of transaction. Hacker may be trying to attack multiple bitcoins to steal large amounts of money and money laundering can happen easily.

[bolbau]

this is funny, not just bitcoin that should be blamed in the context of money laundering, all currencies both conventional and digital have a risk for the occurrence of money laundering. indeed the government will have more difficulty in tracking the use of bitcoin for money laundering, but it is the same when conventional money used for money laundering becomes very difficult to trace because of the interference and interests of certain people who try to block the investigation. instead I feel that if blockchain technology continues to be developed, the future will be easier and reduce the risk of using money laundering.

[Aprilperez1]

Before the blockchain not been created. The bitcoin uses in anything bad. Like they use bitcoin to pay drugs and they use money laundry to make sure there money is safe and no one can trace the amount of the money. But the blockchain created the bitcoin now is transparent if any one will do money laundry it can be traceable.

Yes the drug pushers use bitcoin before. It used for the payment and also in money laundry. They use money laundry because it will not traced where the money come from and it didn't know that what is the purpose of this money.

[xyz_abc_def]

Experts say bitcoin is becoming too mainstream, and therefore too risky, for criminals, so they're switching to more obscure cryptocurrencies

Yep criminals are moving towards Monero which is designed to avoid tracking

[tansoft64]

Bitcoin can be used for money laundering and any kind of illegal transactions online because it is difficult to tracked any of its transaction by the authority, many people are being scammed and lost their investment in thin air because they don't know where their investment go and who is the people behind it, that's why government warn its citizen to watch-out investing on crypto.

[ranman09]

The double standard makes perfect sense when you consider that the entire foundations of our fiat economy are dependent on the the success of banks.  Hence the phrase "too big to fail; too big to jail".  They can make an example of Ross Ulbricht because the US economy won't collapse as a result.  If the US locked up every banker that did something wrong and fined banks amounts that were more proportionate to their crimes, they'd effectively be shooting themselves in the foot head.  It would be fatal if major banks went under, so they'll keep doing everything they can think of to prevent that happening.  

Eventually, though, the banks will take that one step too far, where there's no coming back from it.  They're on borrowed time.  The bill comes due.  Until that point comes, a slap on the wrist is all they're ever going to get.  

Best explanation I've read so far. If I have merit I gave some already. You are right, huge banks play big role on how the economy is moving forward or backward everyday. So a sudden change will definitely affect the economy. Just like what happened to WallStreet.

[Raggie]

Maybe some peoples dont want their amount of money exploited, so they buy bitcoin to store it.
but i dont think everyone do this, it is just some peoples only.

[chalbinov]

As for the question in your subject, people do not need BTC in order to launder their money as money has been laundered since the beginning of using money itself. How many criminal operations who need to launder their assets do you think have changed over partially or fully to using BTC? First of all, much laundering is done as a third party arrangement, rather than by the asset holder in the first place. BTC would be a threat to these 3rd party launderers as you could imagine. Plus it doesn’t really translate as an actual laundering. As when you go to cash out with your BTC to fiat there still lies the question as to the origin of the funds. Don’t forget about instability of the currency itself that could also affect the confidence in using it.

[feny.blackpink]

to avoid their asset to be tracked. but i think only some peoples do that.
most peoples who buy bitcoin is for investing, or for trading i believe.

[Spontebob]

Because bitcoin is perfect tool for money laundering its cheap and very anonymous nobody will trade you if you will use mixers and service like that.

Indeed. It doesn't require proper identification that's probably why. The users or people who use bitcoin for illegal transactions cannot be tracked by the government or the local police. This is where we can buy and purchase bitcoin without knowing where it came from.

[Veterock]

Why do people need to use Bitcoin for Money laundering?

This is a slightly strange question in my opinion! It is obvious! Because this is the easiest way to launder money, for now.

[tangsanzang7]

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?

Bitcoin has also been used to transfer illegal assets – buying Bitcoin in its own currency, selling it on foreign trading platforms, taking it out in US dollars, and transferring assets in minutes.

[jerowacik]

Actually despite bitcoin transactions or other digital currencies do not require holders to trade under their real name it turns out that bitcoin is a terrible tool for money laundering. The trouble is that all bitcoin transactions are tracked and if smb want to catch you he would do it with high propability

[DAVETUN]

This seems like the negative side of Bitcoin, because of privacy in transaction individuals can launder huge cash and transits different country at a time, this also applies to people that use Bitcoin to transact with drugs and arms equipment, This migth be a major reason why government globally has refuse to accept Bitcoin as a legal currency.

[max fray]

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

What do you mean by "double standards"? That's just the anonymity of blockchain technology that allowed such a wide-scale money laundering.
Anonymity is something that makes bitcoins attractive. BTC fans are basically quite respectable people not being prone to crime. But the possibility of nameless transactions makes the bitcoin system attractive to criminal elements.
On the one hand, digital currency is anonymous, on the other hand, your transactions create a footprint in a virtual network that cannot be erased by anyone, so this record can be traced when you least expect.
The user remains anonymous unless his name is associated with his transactions. As soon as it becomes possible to link the user to the wallet login, all of his financial history is on the surface and may become public - What actually happened to Ross Ulbricht.

[r32godzilla]

Yes bitcoin has been abused selectively as already many financial institutions and banks have got frustrated due to bitcoin.So they all specifically target bitcoin that it is used for money laundering.

[jhonnydeep87]

You can track transactions that have been noted that you can not now have them. Someone who has more than 100 addresses to circulate and hide transactions between accounts and when you know the amount of money inside has been transferred through other places.

[Underlord]

Bitcoin does not track its transactions because its anonymous so people start using it like money laundering. Because it is one of the advantages of bitcoin and utilized by people who do not want to see the money transactions.

[funchiestz]

The answer to this question is very simple. Because Bitcoin can be changed everywhere in the world with money. In this way you can easily put money into any country in the world. For example, in some countries you can put money in this way and live a life like you want.