Bitcoin usage in crime activity.
crypticj:
Hello crypto bros.
Today I want to discuss a pretty big problem that bitcoin adoption is facing.
Bitcoin is great in means of anonymous transactions and getting away from the banks and government control, but the problem is, it's the exact problem why criminals are using it. And it's a pretty big one. I'm not saying that criminals use bitcoin more than fiat, but we all can see that illegal services are widely accepting bitcoin.
The problem here is that the system should have some way to fight these criminals because we don't want bitcoin to be associated with drugs and sex trafficking, but the problem is, by solving these problems we should get rid of anonymity which is a pillar for the bitcoin technology, so it can't be done. And this problem might be a big obstacle in mass bitcoin adoption and regulations that are coming.
So I want to hear your opinion: how to make bitcoin technology "safer" so we could fight a crime committed with crypto and help with bitcoin adoption without taking away the main features of bitcoin like decentralization and anonymity?
karmamiu:
Ever since bitcoin was first introduced to masses, they are already linked with illegal activities, sometimes it was even said to be the main currency being used in illegal merchants or black market. It was already pretty common since then, and one thing the government did in order to prevent criminals in doing illegal acts such as trafficking and laundering, they introduced the KYC system which is up until now the problem for every person who just wants to do trades peacefully and anonymously.
Even in the real world, there are still illegal activities we keep seeing or hearing on the news daily, while people say that money is the root of all evil, there are people like me who believed that it just an instrument and the people who are doing those illegal activities are the ones evil. Money or even bitcoin only served its purpose of being a currency, coz if money is literally the evil here, all of us would be arrested and be put in trial on the court for using such illegal instrument. In conclusion, until now there is no exact ways and methods to keep bitcoin safe, since privacy and reputation (by reputation I mean, bitcoin's reputation), will never go along together and also impossible to happen.
Despairo:
Bitcoin was never been anonymous in the first place, it's pseudonymous which mean no one know who's you, but anyone know your address, how much you have transacted and how much your total holdings.
Quote from: crypticj on April 02, 2023, 01:28:10 AM
we don't want bitcoin to be associated with drugs and sex trafficking
We? or only you? I don't care if Bitcoin to be associated with drugs, money laundering, sex trafficking etc, as long as I don't use it for bad purpose, there's nothing I should need to worry. Ask yourself, can you make sure and verify if every fiat money you get from banks or other people are clean money which not associated with drugs and sex trafficking?
Money is money, there's no dirty or clean money.
Husires:
Almost all currencies are misused in one way or another. Centralization here does not mean that currencies will not be misused. Cash is used in most of the drug trade. As for central systems, if we take banks as an example, despite the strict regulations, we note that the banking system is used in money laundering and extensively in illegal activities.
French authorities raid banks in massive tax fraud case
French authorities search 5 banks in Paris in tax fraud caseThe Five Biggest Money Laundering Scandals
Danske Bank Pleads Guilty to Fraud on U.S. Banks in Multi-Billion Dollar Scheme to Access the U.S. Financial System
These are a few examples of banking systems in countries that are known to be strict in censorship, let alone in countries whose system was designed mainly to hide money laundering.
cryptoaddictchie:
Quote from: Husires on April 02, 2023, 03:55:10 AM
Almost all currencies are misused in one way or another. Centralization here does not mean that currencies will not be misused. Cash is used in most of the drug trade. As for central systems, if we take banks as an example, despite the strict regulations, we note that the banking system is used in money laundering and extensively in illegal activities.
Yes currencies has been misused but I doubt that the government are just ignoring it right? Means they are indeed compromise those illegal people. Comparing to bitcoin and decentralized, its really contradicting the situation. We cant argue with OP since criminals are really taking advantage Satoshi made and that has been seen everywhere. Like the seized of chipmixer, whom discovered been used on laundering.
OP since bitcoin is fully decentralized, I doubt anyone can stop from using that as a means, unless someone regulated a thing concerning that which I think can be implemented on the ongoing space of bitcoin. Maybe for other coin can still be salvage but not in btc.
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