If Bitcoin Isn't Really Money, Then It Can't Be Laundered, Right? by dragosroua

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· @dragosroua ·
$12.31
If Bitcoin Isn't Really Money, Then It Can't Be Laundered, Right?
Is Bitcoin money? Or it isn't? Beyond the philosophical value of such a question lies a much more mundane implication: if Bitcoin isn't really money, then anti-money laundering (AML) policies don't apply to it.

This approach was used a couple of weeks ago (somehow the news only popped today in my feed) by the executive director of the Bitcoin Foundation,  Llew Claasen, who sent an open letter asking to put the Department of Justice under investigation. Because it investigates Bitcoin as a vehicle for money laundering. 

Now that's an interesting turn of events, isn't it? If Bitcoin isn't money, then it can't be laundered. I know it sounds simplistic, and, if you really think about it, any store of value can be used for "whitening" black money. But, as Claasen points out, this is already happening at a much higher frequency:

> Contrary to this assertion, there is little to no systemic evidence that terrorist organizations use virtual currencies. In fact, the use of cash or other assets, such as art trafficking, represents a much greater risk for the law enforcement community.

There is a lot of law language and more information, in [this article](https://www.theregister.co.uk/2017/08/31/bitcoin_foundation_wants_doj_investigated/?mt=1505898049003), if you want to dig deeper.
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_I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at [Dragos Roua](http://dragosroua.com) where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua._
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_If you're new to Steemit, you may find these articles relevant (that's also part of my witness activity to support new members of the platform)_:
* [Rewards: Were Does The Money Come From?](https://steemit.com/steemit/@dragosroua/steemit-newbie-faq-rewards-were-does-the-money-come-from)
* [Netiquette: How To Avoid Being A Steem Douche?](https://steemit.com/steem/@dragosroua/steemit-newbie-faq-netiquette-how-to-avoid-being-a-steem-douche)
* [Witnesses: What Are They And Why Should You Care?](https://steemit.com/steemit/@dragosroua/steemit-newbie-faq-witnesses-what-are-they-and-why-should-you-care)
* [How Can I Mine Steem And What CPU / GPU Power Do I Need For That?](https://steemit.com/steemit/@dragosroua/steemit-newbie-faq-how-can-i-mine-steem-and-what-cpu-gpu-power-do-i-need-for-that)
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@philiparniebinag · (edited)
$0.06
I think bitcoin as a digital currency. But the point you have in there in your post sir is very informative.
👍  
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vote details (1)
@resteemia ·
$0.07
amigo #resteemia at your service

interesting information. 'Llew Claasen got a good point'. nice you shared this news @dragosroua

ReSteemia
'UpVoted ReSteemed Commented'
👍  ,
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vote details (2)
@steemwija ·
$0.07
@dragosroua - Oh my goodness, hope it'll solve as our favor. For me BitCoin is a digital currency. So, I have doubts about this argument Sir.

+W+ [UpVoted & ReSteemed]
👍  ,
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@hms818 ·
$0.21
Very interesting question...
👍  , ,
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@fproductions ·
$0.06
These people still dont get how the cryptocurrency works.
👍  
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@sheikh27 ·
its totally appreciate with you about laundring of money as bit coin with high value to be stored, thanks for information.
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@livelifefullest ·
$0.06
If we can buy goods with it is in a certain way money. But when people stick to the thought that money is from paper or Metal... we cant change that way of thinking. But then immediately raise the question; what do they think about a creditcard ?? Is that money ? 

Good post !
👍  ,
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@superstar2018 ·
$0.07
I have Indian roots. Corruption is high compared to most countries in the world. I guess bitcoins have made laundering easy for many here.
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@jaraumoses ·
$0.07
Things are getting interesting now here.
>Now that's an interesting turn of events, isn't it? If Bitcoin isn't money, then it can't be laundered
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@digitalfirehose ·
After watching Ozark with Justin Bateman, I was shocked with the implication of large scale money laundering in Wall Street and casinos. I don't know how much of that plot is based on real life, but it would not surprise if it was a close match.

I saw an article on Steemit a few weeks ago talking about how the DOJ and others are figuring out how to read the blockchain and track the movement of money there. That seems to have made the blockchain less than appealing to people who really want to hide their money.

Hopefully, the authorities can get this sorted out. I'd be surprised to see them make a determination either way. I think they like the uncertainty better.
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@heymattsokol ·
Yeah, it seems like a terrible idea to use BTC to launder money. It's much easier to track BTC than other laundering schemes, or so I imagine.
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@technicalside ·
Bitcoin is the future thats all and that cant be changed by anyone. Bitcoin is here to stay whether "you" like it or not.
👍  ,
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@spidersprog ·
It's interesting tat they say there is little to no evidence.
I wonder if this is because using bitcoin in this easy to hide (or hard to trace if handled correctly) , or if it actually not used much for this purpose. 

I suppose like any other use case for bitcoin it is still a small proportion relative to cash and other assets.
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@theguruasia ·
@dragosroua,
BitCoin is a digital currency, that's how I learnt about it! So, if it's a digital currency it might engaged with money laundering as well. That's what I believe about BTC! Anyway this is a great question and hope great discussion about it too!

Cheers~
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@peteyates ·
$0.66
good point. associations of bTC with crime / money laundering all apply many times over to regular banking - and they get away with it. it's interesting how a very large international bank got away with laundering cartel money [ a fine, no jail time], being protected by the shadowy Financial Stability Board even against the powerful US DOJ.
👍  ,
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vote details (2)
@barca ·
Bitcoin is more then money its very interessing Thank you for sharing!
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@danzy ·
Whether physical or virtual corrupt people will always find a way to cheat.
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@calatorulmiop ·
And let's say they "prove" bitcoin is used to launder money. Is it possible to ban it's usage in a country?  I don't see a way you can prevent people from using crypto.
👍  
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vote details (1)
@blazing ·
only the genius can answer this i guess as the illegal activist can do anything they want to do
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@teamhumble ·
it's great that we start to get into a public debate about VALUE because we certainly need one about GREED and CORRUPTION because those are the things in society that i feel a blockchain can bring a level of accountability into the time spent and the money attached to it.
properties (22)
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@scalextrix ·
A few years ago the BoE did a study about methods of money laundering, crime, terror funding etc.
Crypto currency came at the very bottom of the list, with cash at the top.
properties (22)
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@therealwolf ·
$0.32
People who have no real idea about cryptocurrency always bring the point that it was used to buy illegal goods - but what about all that € and $ that get's used by terrorist to buy bombs and weapons?
👍  ,
properties (23)
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vote details (2)
@theleapingkoala ·
$0.10
Hi @dragosroua
Its me again!
here is the link to my [6th curation post](https://steemit.com/curation/@theleapingkoala/dr-the-leaping-koala-my-journey-on-steemit-8-curation-6) where I mentioned your post. Hope you will have a chance to visit it and hope you will like it :D
👍  
properties (23)
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vote details (1)
@imwatsi ·
Great point! They don't recognize it as currency but treat it as such. crazy! it also make me wonder if people who lost access to their funds during the BTC-E events can sue DoJ? I mean, it can't be right to rob other people of their right to use their "money" just because you think some of it might be dirty. it's like shutting down an entire bank and banning the use ten dollar bills because one account holder broke the law or ten dollar bills were used illegally by someone at some point
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