Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: bmw1 on June 28, 2021, 12:38:53 PM
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El Salvador's law-making bitcoin legal tender means banks face higher risks, including of violating rules against money laundering and terrorism financing, rating agency Fitch said in a report on Friday, Reuters reported.
The bitcoin move, set to take effect on Sept. 7, "would increase financial institutions' regulatory, financial and operational risks, including the potential of violating international anti-money laundering and terrorist financing standards," said Fitch. The possibility of using bitcoin for all obligations, including bank loans, could funnel bitcoin traffic through the Central American country, which "may increase the risks that proceeds from illicit activities pass through the Salvadoran financial system," Fitch said.
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That is probably accurate and as such deeply concerning.
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Currently most of the money laundering and terrorist financing in the world takes place through fiat currency... fiat cash is less traceable than crypto. I don't think this will be as big of an issue as it's made out to be.
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Fitch is making money by issuing warnings of possible impending doom and this time around I think they can be deadly wrong. Increased money laundering activities using Bitcoin? They should know that this is not any more true when criminals realized that actually all the transactions are traceable and Bitcoin is not really a privacy coin though it can be anonymous. I think the USA government even succeeded in getting convictions against criminals with the use of blockchain-recorded details of the transactions...they are there for all of us to see, analyze and explore.
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El Salvador's law-making bitcoin legal tender means banks face higher risks, including of violating rules against money laundering and terrorism financing, rating agency Fitch said in a report on Friday, Reuters reported.
The bitcoin move, set to take effect on Sept. 7, "would increase financial institutions' regulatory, financial and operational risks, including the potential of violating international anti-money laundering and terrorist financing standards," said Fitch. The possibility of using bitcoin for all obligations, including bank loans, could funnel bitcoin traffic through the Central American country, which "may increase the risks that proceeds from illicit activities pass through the Salvadoran financial system," Fitch said.
Such a statement by the rating agency Fitch has nothing to do with reality. The relevant authorities of the United States and the European Union have already repeatedly checked and analyzed the use of bitcoin by criminals in their illegal activities and have unequivocally concluded that bitcoin was used for illegal purposes only in a few percent of cases. Bitcoin is not suitable for this, since it is only relatively anonymous. Regular money is used for this much more often. The percentage of use for criminal purposes is slightly higher only for cryptocurrencies with a high level of anonymity, such as Monero, ZCash, Dash.
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A long-standing concern and it cannot be legally proven, transactions using Bitcoin are very transparent and users can use Bitcoin for anything they want, if one day the bank account and Bitcoin wallet are integrated into one Debit card, then nothing will happen. nothing to worry about because all transactions can be tracked.
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This is possible. That is why the need to strengthen their regulations is a must. Although Bitcoin transactions can be traced, it depends on the country's capability to strictly enforce its laws and implementations. If the government is weak, then the risk is very high against the bad guys.
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I agree. Does El Salvador have any regulations in that regard? Are they working on any either? Because I haven't heard anything.
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El Salvador's Bitcoin Act: Banks face the risk of money laundering. I have no idea about this. Because I'm a new member of this forum, I can't comment on this. If any senior brother knows about this, please help me.
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El Salvador's law-making bitcoin legal tender means banks face higher risks, including of violating rules against money laundering and terrorism financing, rating agency Fitch said in a report on Friday, Reuters reported.
The bitcoin move, set to take effect on Sept. 7, "would increase financial institutions' regulatory, financial and operational risks, including the potential of violating international anti-money laundering and terrorist financing standards," said Fitch. The possibility of using bitcoin for all obligations, including bank loans, could funnel bitcoin traffic through the Central American country, which "may increase the risks that proceeds from illicit activities pass through the Salvadoran financial system," Fitch said.
This could happen as Bitcoin has already been seen as a means of money laundering even before now and even more so now that Country like El Salvador is making Bitcoin a Legal tender, most Bitcoin heaters like most Government will see this as that opportunity that most of the criminals have been waiting for and considering how the Bitcoin network is, it becomes almost impossible to track these transactions but if they really want to, I believe they could make every Bitcoin wallet do a KYC but I don't know how this will work.
Anyways, there are valid points to what Fitch said and this might just be one of these setbacks that Bitcoin will continue to face and address.
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El Salvador's Bitcoin Act: Banks face the risk of money laundering. Bitcoin is illegal in our guise because the legitimacy of Bitcoin depends on the government and the bank of a country. When Bitcoin is legalized, it has all the effects on the bank. Bitcoin is used to smuggle money from one's own country through bitcoin.
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Nearly all money laundering happens via fiat currencies... laundering through crypto is a tiny fraction of the total activity world-wide... does this reflect badly on fiat currencies? not really... it might look this way because crypto is so much smaller than it could be in another 10 or 20 years...
These fears around laundering and crypto is analogous to comments about the internet in the mid 1990s, saying that the internet is for criminals and porn only... and now despite criminal activity and porn ever existing on the internet, no one thinks the internet is bad because those things exist.
We will see the same thing happen with crypto, no one is going to be worried about this these in time and this space is going to become as accepted of a part of life as the internet is to our society today.
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I think the better question here is what portion of what portion of the overall use Bitcoin involves money laundering and other criminal activity compared to the non-criminal activity and what is the same proportion involving fiat currencies.
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Banks, once again, divert attention elsewhere, but do not want to look at themselves.
"Among the big banks mentioned, which have known and allowed several people to transact with illicit resources, is JPMorgan with around $514 billion and Deustsche Bank with $1.3 billion. In addition to the above, HSBC, Standard Chartered Bank and Bank of New York Mellon are mentioned".
Source: https://twitter.com/ICIJorg/status/1307726268943790083
That is part of a report produced last year. Banks, instead of talking about Bitcoin, should shut up.
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Electric vehicle manufacturer Tesla has joined the ranks of companies holding Bitcoin, with an SEC filing revealing that the company invested "an aggregate $1.50 billion" in the cryptocurrency. according to CEO Elon Musk, this was "to prove liquidity of Bitcoin as an alternative to holding cash on balance sheet.
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It's just that the existing global banking system is worried that other states with weak economies may follow the example of El Salvador and switch to using bitcoin or another decentralized cryptocurrency. This will mean that these states will move away from their zone of influence and control. Therefore, they express various far-fetched warnings and concerns. Bitcoin has never been heavily used for money laundering and terrorist financing, as it is classified as a conventionally anonymous cryptocurrency.
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It's just that the existing global banking system is worried that other states with weak economies may follow the example of El Salvador and switch to using bitcoin or another decentralized cryptocurrency. This will mean that these states will move away from their zone of influence and control. Therefore, they express various far-fetched warnings and concerns. Bitcoin has never been heavily used for money laundering and terrorist financing, as it is classified as a conventionally anonymous cryptocurrency.
It is reasonable to worry that there will be misuse of money that could target perpetrators of money laundering from corruption or the narcotics trade. Therefore, usually the government that gives freedom to bitcoin trading will have a mechanism that can detect abuse that its citizens might do. there is always a mechanism that needs to be regulated so that the country does not miss out.
it could be that what you say about the tendency of big countries to have less influence, if more countries use bitcoin. but I don't see it as a hidden prohibition that is used to provide information so as not to use bitcoin. because it is certain that bitcoin and fiat through banking will continue to run together because both have their own characteristics and are not to compete with each other.
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A long-standing concern and it cannot be legally proven, transactions using Bitcoin are very transparent and users can use Bitcoin for anything they want, if one day the bank account and Bitcoin wallet are integrated into one Debit card, then nothing will happen. nothing to worry about because all transactions can be tracked
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A long-standing concern and it cannot be legally proven, transactions using Bitcoin are very transparent and users can use Bitcoin for anything they want, if one day the bank account and Bitcoin wallet are integrated into one Debit card, then nothing will happen. nothing to worry about because all transactions can be tracked
Yes, I think we should not worry about bitcoin.
I also agree about bitcoin wallet and bank account will be integrated.
I think It will be good effect for crypto currency world.
Bitcoin is so popular, I think banks should adopt bitcoin technology
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Money laundering is always happening even without Bitcoin. Judging a higher risk of money laundering with Bitcoin isn't proven yet. I think those people are only speculating and influenced by old issues about Bitcoin's bad sides. Each transaction on Bitcoin can be tracked and analyzed because the wallet receiver and wallet sender can be checked. So, basically, money laundering isn't something that we must be so worried.
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Money laundering is always happening even without Bitcoin. Judging a higher risk of money laundering with Bitcoin isn't proven yet. I think those people are only speculating and influenced by old issues about Bitcoin's bad sides. Each transaction on Bitcoin can be tracked and analyzed because the wallet receiver and wallet sender can be checked. So, basically, money laundering isn't something that we must be so worried.
I think It's just rumours about bitcoin has been misused for money laundering.
It is proven, We can talk about it.
But If it's only allegation, I think It's just FUD.
I agree with you money laundering is always happening even without bitcoin, happen in every where.
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Bitcoin was created only to be independent, not adrift by intervention from governments, financial institutions or those who control the world's finances because Bitcoin can be said to be clearly Decentralized.
In states like El Salvador, the law for Bitcoin is very difficult to implement because I see that Bitcoin cannot be subject to law and the Bank cannot intervene because it is certain that Bitcoin cannot be accepted at the Bank of El Salvador.
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Once this country decided to legalize Bitcoin as a legal tender, I am sure that they have been transparencies about the things to do in the future. Including about the asset that are commonly only focusing on Bitcoin, but not really about banks. However is it?
No of course, they are smarter and they have problem how to store, use, trade, and also utilize.
Money laundering? Well maybe it will happen
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El Salvador's law-making bitcoin legal tender means banks face higher risks, including of violating rules against money laundering and terrorism financing, rating agency Fitch said in a report on Friday, Reuters reported.
The bitcoin move, set to take effect on Sept. 7, "would increase financial institutions' regulatory, financial and operational risks, including the potential of violating international anti-money laundering and terrorist financing standards," said Fitch. The possibility of using bitcoin for all obligations, including bank loans, could funnel bitcoin traffic through the Central American country, which "may increase the risks that proceeds from illicit activities pass through the Salvadoran financial system," Fitch said.
Money laundering, I think It always happens at every where, several members here have commented about it
I agree.
Not only in bitcoin or crypto, because scammers gona scam, and always doing the same .
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Where did the money laundering come from ??
Money laundering is if a lot of Bitcoin is misused for what is not good because medical drugs are also if not used for good it will turn into drugs and narcotics.
I see from a different perspective that this is the starting point for a new regulation in the state of El Salvador for Bitcoin procurement to be accepted by the whole community.
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The banking system has always used this pretext to cast a shadow over decentralized cryptocurrency. They already need to come up with something new, however, apparently, they have no other arguments, and the old arguments, which in fact do not correspond to reality, were again used.
Previously, both in Europe and in the United States, relevant studies have already been carried out, and they all showed that Bitcoin is used for criminal purposes only in a few percent of cases. Cash is used much more often for this, so they should pay more attention to their fiat. Moreover, I think that this is not relevant at all for El Salvador.
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I don't know what to worry about. El Salvador, when he came to accept Bitcoin, was ready for such an action. It is necessary to calculate the steps forward in order to be aware of the challenges ahead.
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This is, of course, a very important issue in the field of bitcoin recognition in different countries, because in fact, bitcoin is not controllable, and these are really the risks of money laundering. Here, of course, the other side of the coin, it seems that everyone wants the recognition of bitcoin around the world, but there are a number of problems with this innovation.
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I find it really funny that banks are afraid of money laundering when it is precisely the banks that "help" to launder money. In the latest Business Insider report of 2020 it is made public that banks such as JPMorgan Chase, HSBC or Deutsche Bank, among others, participated and facilitated the movement of money from criminal activities even after being discovered. Banks should shut up, update their business models, or disappear.
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The problem with Bitcoin is that it exists exclusively in digital form. Paper dollars can be withdrawn from an ATM and paid for goods and services in places where contactless payment is impossible, and there are still plenty of such places not only in El Salvador, but even in Europe. Another problem is that digital currency is not backed by anything and is only a speculative instrument. It can be worth one dollar a coin and you can't do anything with it.