The digital currency Bitcoin is in the battle like never before. The currency is a lucky number and is not subject to the normal financial system in the world - much because the basis is just that one does not want to relate to national states.
Common rules do not apply
In regular financial institutions, all companies that handle transactions have a duty to notify about suspicious transactions that one believes may be money laundering or tax avoidance. But this does not apply to Bitcoin.
Transparent - and anonymously
Bitcoin is basically completely transparent because all historical transactions are open to all to look at. The problem is that one only sees which accounts are trading. There is no possibility to see who owns a Bitcoin account before the currency can be exchanged for regular cash in a bank transaction. Thus, the system is initially very well-suited to concealing money from taxation, and not least shady business.
Bitcoin was the usual form of payment on the huge illegal market Silk Road, which was raided by the FBI earlier this year, and it seized 140,000 BTC from the predicted chief.
Enormous fluctuations in the valuation of Bitcoin, as well as the ability to create anonymous accounts that make it possible to follow legitimate cash flows, also make the system almost tailored for money laundering. With proper use of the system it is very easy to be able to predict both huge losses and gains.
"Criminals network pours money into Bitcoin and collects winnings without regulations can stop it," says Kleiven to Nettavisen NA24.
Prohibited just one place
And for the time being, no government seems to be able to prevent this from happening. Thailand has introduced consumption towards the use of the system, but authorities also have some sanction capabilities against the system.
- Liquidity in "real" money must always be available if players want to switch from bitcoins to, for example, US dollars or euros. Currently, this business is being conducted outside the control of the authorities, and the risk is unknown, Finanstilsynet wrote in its Risk and Vulnerability Analysis last year.
Finanstilsynet has previously pointed out that "US authorities have signaled that they want to remove this system before unfaithful users get too much involved" but this does not seem to happen. A federal court ruled this summer that Bitcoins is money , and the US Department of Justice recently said that the system could have its benefits .
This does not mean, however, that there is any control over the system. Økokrim refuses to answer questions from Nettavisen NA24 about how they look at Bitcoins, and think they are not the right addressee, although the system can be used for money laundering and tax evasion.
- Failure to comply with the regulations
Finanstilsynet confirms that they have no control.
"Bitcoins are currently not falling within the current Norwegian financial regulation," says communications adviser Jo Singstad to Nettavisen NA24.
Instead, they are waiting for any initiative from Europe.
"Finanstilsynet is aware that there is a discussion at European level regarding possible regulation of Bitcoins and other virtual currencies, especially in view of the money laundering risk associated with such anonymous payment systems," says Singstad.
He emphasizes that although Bitcoins is out of regulatory control, money laundering is illegal regardless of method.