Bitcoin is mostly being used for illegal activities and money laundering: Quebec scientist
Money laundering, terrorist funding and funding other illegal activities are the biggest fears associated with cryptocurrencies. But are crypto tokens really being used for such activities? They very much are, says a scientist of Quebec.
Rémi Quirion, the Chief Scientist of Quebec, recently released a fact check document on Bitcoin. The document gives a detailed description of how Bitcoin is being used. According to it, and most other ‘nocoiners’, the world’s favourite currency is mostly used to fund illicit activities.
“Bitcoin is not above the law, nor is it a magnet for illicit transactions: it forms only a tiny part of the criminal money circulating around the planet. The reason: it is less attractive for anyone who wants to make transactions without leaving a trace” expressed the Chief originally in French.
One of the basic advantages of any cryptocurrency is that fact that they prevent money laundering and funding illicit activities. But, the recent developments prove them otherwise.
On the contrary, it is already proven that governments and organisations like Europol/Interpol have successfully traced down illegal activities that facilitated BTC payment. According to certain sources, both addresses and transactions could be identified.
Another study from earlier this year conducted by the Center for Sanctions and Illicit Finance of the Defense of Democracies Foundation found that illicit activities accounted for just 0.61 percent of money entering cryptocurrency in any way. This included exchange or conversion platforms, with data gained from a 4 year period. To top this, the percentage has actually fallen from 1.07 percent in 2013 to just 0.12 percent in 2016.
Out of these two reports, it is hard to figure out which one to believe. However, money laundering is definitely a big issue when it comes to cryptocurrencies. Holders of ‘black money’ are said to benefit from it largely. If the trend continues, governments around the world could very well ban their usage and trade in the coming days!
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