Cryptocurrencies are used for illegal activities

22 104
Avatar for Infinity
2 years ago

November 26, 2021. No. 78

“Cryptocurrencies have been used to launder the profits of online drug traffickers; they've been a tool to finance terrorism,” Janet Yellen (Treasury Secretary).

This is undoubtedly one of the most widespread phrases around the planet today. Despite that, only 3% of Bitcoin (BTC) transactions are estimated to be used in illegal activities. So why do they try to make us believe that it is more? My modest opinion is the same as always: Governments do not like everything to be decentralized. It bothers them, and for that simple reason, they invent these phrases to create moods, especially for new users who want to start in the crypto world.

Let's not fool ourselves. Although it is only 3%, if they are used to doing illegal things. The advantage of simply having a wallet with a public address, and that it is not registered to you in any way (as long as you keep it secret), nobody can link that address to you in any way, at least not so easy. Even when the money is going to be withdrawn physically, different techniques are used that mix those BTC or other cryptos with other addresses, which make it seem that the FIAT money withdrawn ends up being for legal use.

Dark web

Haven't you entered the dark web yet? Well, I strongly recommend that you don't. It is not a place for everyone. It can be really very dark, as the name implies. The Dark Web is the content of the Word Wide Web that exists in the darknet. They are networks that overlap with public networks. Access requires specific software and configuration.

Image from lightbox systems - Dark Web

It has a fair amount of risk to access it. The most common is that your pc ends up infected by a virus; meets criminals, and even participates in illegal activities. Scammers, rapists, immoral, thieves, hackers, and some other users with these qualities are the most common there. It occurs to me to think of something positive for this network. If there is something positive, I can tell you that any of the other individuals overshadow it 100%. What we know from the internet is the tip of the Iceberg. The real internet, everything that is not indexed to conventional search engines, is on the Dark Web.

Bearing this in mind, it is the ideal setting for carrying out illegal activities with cryptocurrencies. Mixing BTC there can be quite a challenge. Starting with different pages that tell you to provide the service, and do not return your coins.

To further increase anonymity, criminals prefer to use platforms to mine FIAT such as PayPal, due to the little information required to register with it.

Laundering BTC or cryptocurrencies in this way requires a 15% commission, this is extremely cheap, compared to 50% using the traditional way. The threshold to do so is no more than $ 10,000 USD. When you want to do it in large quantities, you do not have a guarantee of good operation.

The illegal activities most attributed to him are Sex, Drugs, and Terrorism.

“I think many (cryptocurrencies) are used, at least in a transaction sense, mainly for illicit financing. And I think we really need to examine ways in which we can curtail their use, and make sure that anti-money laundering (sic) doesn't occur through those channels. ” Janet Yellen.

This is a false narrative. Full of hatred and trying to discredit what would be the end of the Banking Systems and the power that governments have over our finances. This year, a report from Chainalysis published that, in 2019, after more than $24.1 million of cryptocurrency transactions, only 2.1% are estimated to have been used in illegal activities.

It does not matter if some strive to see only the microscopic straw that is in the neighbor's eye, but it is difficult for us to see the stone with which we collide every day.

This is my 5th entry for "2021 Bursting the Myth Around Bitcoin writing competition" organized by @SofiaCBCH. You haven't participated yet? There are only a few days left until the deadline!

Credits:

100% original content.

All images are referenced.

All designs are made on Canvas.

17
$ 9.91
$ 9.12 from @TheRandomRewarder
$ 0.15 from @Loucy
$ 0.10 from @Alther
+ 13
Sponsors of Infinity
empty
empty
empty
Avatar for Infinity
2 years ago

Comments

How could it be? Like I really illegal activities can be done in cash or a cheque. Maybe they used cryptocurrencies for confusion.

$ 0.01
2 years ago

They use it and in an extremely low %, precisely because it is de-centralized and it is difficult to know the real person behind that wallet

$ 0.00
2 years ago

It is 'true' because they make it 'true'. As you said the 'status quo' does not want a decentralized econnomy, so it is like a self-fulfilling prophecy or even a tautology: 'It rains because it rains' So they are not legal or licit because they don´t make it legal or licit.

But It doesn't mean that those transactions are mostly an indicator or a way for money laundering of other kind of illegal activities. But let's imagine that is true for a while: then let's illegalize also FIAT money the for same reason.

As you point to, most or criminal activities are related/financed with FIAT, nor with cryptos.

$ 0.01
2 years ago

Ahah you hit the nail on the head. Imagine if they would have to declare the FIAT currency illegal because it is used for illegal purposes. Governments are like that, they want to maintain control at all costs.

$ 0.00
2 years ago

Do you remember my yesterday's post about Indian government wanting to shut down or ban private cryptos and digital currencies?? this is exactly why

$ 0.01
2 years ago

Of corse I remember my friend. So sad 😔. But it is only a matter of time. Don't worry, eventually it will be known that cryptocurrencies are the future and it won't matter if governments try to overshadow them.

$ 0.00
2 years ago

All I know is that illegal activities were done with cash... bags of cash! Nothing changed!

$ 0.01
2 years ago

Of course. They just like to create confusion. Governments will do anything to avoid power.

$ 0.00
2 years ago

Everything can be bad in the hands of bad people, no exception

$ 0.00
2 years ago

Criminals always find the way how to do crime, that is very hard to trace. With crypto it is unfortunately a good space for them as although the transactions are public, but other than your public address nothing is shown.

$ 0.01
2 years ago

Despite all the % used for illegal activities is very low. Unfortunately many still believe that it is high. It hurts the new ones who want to enter the crypto world, with a bad image. 😔

$ 0.00
2 years ago

Definitely. The other thing is the meme coins. It is so bad for crypto. Anyone can create a coin hype it up push the price high in just days or weeks and do a rug pull. It is not an idea to give, but unfortunately it happens and greedy people lose a lot of money. I personally buy well establised coins. Still risky as it is crypto, but at least not scam.

$ 0.00
2 years ago

Some people use crypto currencies since it's untraceable, they can't be located unlike cash or cheque transactions.

$ 0.01
2 years ago

Despite all that, it is used very little for illegal activities. Contrary to what they would have us believe.

$ 0.00
2 years ago

Countries like Pakistan facing same thing. Wait this can be true. Like me i withdraw my Frist income. I used cashmaal for my withdrawal. So there was no involvement of government. They don't even know that where would i use this money. From one Bitcoin Wallet to an other i can easily send it. Don't know next person where spent this money.

Yes, a need of complicated process and government improved app should use to take withdraw. Yes threat still exist.

$ 0.01
2 years ago

If it's done right, nobody knows where that money went. That's the advantage of being de-centralized. But a little slip and they identify you, with a little work, but it is done.

$ 0.00
2 years ago

Exactly mate. This is true.

$ 0.00
2 years ago

Even prior to crypto-times, illegal activities are going on. I think the government just wants to keep control of the financial system themselves hence, the "wrong" narrative saying crypto is used for illegal activities. All the best on the contest by the way.

$ 0.01
2 years ago

Exactly, this is what happens. They don't want to lose power. So they invent anything, even when the statistics are clear

$ 0.00
2 years ago

Hope they will not succeed :)

$ 0.00
2 years ago

Totally agree, laundering, investing, exchanging everything is easy in crypto. Yes, it's a risk that it's untraceable. That's why many countries still make crypto exchange illigal. I hope govt/authority will figure out something to have more control over it.

$ 0.01
2 years ago

Illegal activities will always exist, with cryptocurrencies or not. It is an evil that affects the planet. So blaming the problem only on cryptocurrencies is absurd. Too bad they think like that. I hope that one day we will be able to advance in that sense.

$ 0.00
2 years ago