Crypto still being called a tool of criminals

Report out on criminal use of crypto from anti crypto outfit Ciphertrace. They are in business to sell anti privacy tools to investigators, even though they claim they are out to make blockchains more secure. They were first funded by Homeland security, so you can decide for yourself. A lot of the stuff in their report with regards to criminal misuse of crypto can be debated, so I will.

• Amount of crypto being stolen is increasing

Okay how much was stolen from banks electronically? Don't know? That is because no one does, the banks won't tell anyone. The only reason we know about exchange hacks is because they are transparent about it. The answer to this issue is better security anyway. We don't ban money because criminals rob banks, why ban crypto because they steal it?

• Money launderers use it

This is nonsense. I sell a bunch of drugs for cash, that cash is as dirty as Bitcoin. Bitcoin/Cash are equal. Putting a check from an exchange into the bank is going to raise the same questions putting cash in would. It has the same tax implications.

• Crypto being used in ransomware attacks.

Once again these attacks are best dealt with be improving security. Not banning crypto.

• Privacy coins are bad

Wait a minute, you can't tell me crypto is being stolen by the billions but I need a public wallet address where the criminals can tell that I have a bunch so they can steal it from me. How would you feel if your bank account balance was public knowledge? There are legitimate reasons to use privacy coins that don't involve law breaking. I don't want the guys with guns and ski masks showing up to demand my password, privacy isn't just some libertarian buzzword

• Terrorists use it

Terrorists can send small amounts of money thru Western Union too, over and over, with no ID. How is crypto different? Calling coins a security threat is a way to get a reaction from people, no one want's to be labelled as being on the side of terrorists.

• Online drug dealers use it

Even if you are against drugs, what do you prefer

1. drug dealers having shoot outs in the park over turf that send stray bullets everywhere while they sell impure drugs of unknown composition?

2. Drugs being shippeed by mail with no shootouts, and your kid brother doesn't get caught with drugs and have his life ruined? There are young people now who have never used a traditional drug dealer. They are less likely to get drugs with dangerous cutting agents or of unknown purity. Most risk factors are reduced or eliminated with online sales.

• Human traffickers use it

The argument used when people say they don't care about drug dealers. First of all prove it is happening, the police saying it happens doesn't make it true. What percent of human trafficking involves crypto? Pimps have been using cash to buy and sell women for thousands of years, are we banning cash?

• Arms dealers use it

Arms markets on dark web actually do very little business. Most if not all those dark web sites are fake. People in the USA buy guns from easier sources, people outside the usa are crazy to try and get a gun shipped to them. Getting small amount of powder in the mail is a whole different thing than getting a gun. I call bullshit on this.

• Tumblers are a tool of the devil

Meh. A burner phone and a crypto ATM are all you need. Hell I can get multiple fake numbers to receive texts on and just keep pulling a thousand bucks out each time of the machine. I don't need a tumbler. Yeah you shouldn't make a million selling drugs and send that money to the exchange, but there are other ways around it.

An additional point, the report claims non US exchanges, even crypto to crypto ones, are subject to US regulations and are required to follow know your customer regulations for US based clients. The way around this is decentralized exchanges. Good luck stopping that.

https://cdn2.hubspot.net/hubfs/4345106/crypto_aml_report_2018q2.pdf?submissionGuid=d4a2f160-1a9c-4522-b571-380176ec01e2

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