Surfin Bitcoin: Laundering and the Future of Cryptocurrencies

There are many misconceptions about cryptocurrencies, including the idea that they allow people to become millionaires quickly. Moreover, its bad reputation regarding money laundering is still very present. Bitcoin has been associated with money laundering since its inception. However, very few illicit exchanges have been made using bitcoins or other cryptos.

Less than 3% illicit transactions

There have been two recent cryptocurrency crashes that have resulted in a bear market. These events caused the prices of many cryptocurrencies to drop dramatically. Both long-term and short-term price changes have been observed in the cryptocurrency market.

Data from Coinmarketcap suggests that some cryptocurrencies have risen in value over time, while others have seen dramatic short-term increases. This makes cryptocurrency an attractive prospect for many investors.

Cryptocurrency myths are hard to disprove. William O’Rorke, a crypto lawyer from ORWL, told a talk at Surfin’ Bitcoin that people have always said a lot of nonsense about bitcoin money laundering.

The myth of Bitcoin comes from its original use as a currency for certain websites accessible via the darknet, such as Silk Road. Criminals have been using cryptocurrencies for their illegal activities since the inception of the coin.

Toutofis, a study by Chainalysis reported that 0.15% of all transactions in the ecosystem were illegal exchanges in 2021. This figure is decreasing every year as more crypto players follow anti-crypto regulations. money laundering. Additionally, a Cambridge study found that only 3% of cryptocurrency exchanges do not perform KYC, or Know Your Consumer.

The Pacte law in France obliges cryptocurrency service providers to follow the same anti-money laundering regulations as traditional financial providers. In addition to this, the French AMF offers a PSAN status to service providers dealing with digital assets. 43 crypto providers have been approved by the AMF, including Coinhouse and Binance. Providers that receive the status are referred to as PSAN Service Actors or Digital Asset Service Providers. One of the benefits of receiving this status is that players can benefit from tax breaks from the French government.

The MiCa regulation should propose a new status similar to the AMF’s PSAN approval. This regulation should be implemented to strengthen the fight against money laundering.

Bitcoin: a real added value for the financial world?

Charles Sannat from Grenier de l’éco, Alexandre Stachchenko from KPMG France and Adli Takkal from Cercle du Coin participated in a conversation moderated by Richard Détente entitled “Is the value proposition of bitcoin (BTC) really real?”.

Government regulatory pressure on the cryptocurrency industry and the possibility of widespread crypto adoption through central bank digital currencies have made it difficult for experts to determine bitcoin’s future path.

By providing additional regulatory options, these systems reduce crime. One wonders if these programs are just another form of control; bitcoin challenges governments for their monopoly. Ultimately, it is each individual’s choice to sacrifice their freedom in favor of what some consider to be a safer system.

It is unclear whether the fight against the state monopoly on cryptocurrency will be peaceful. Either way, it will be difficult to counter the monopoly that the state currently enjoys. Bitcoin should always be an emergency backup plan; moreover, current geopolitical trends indicate that it should become more robust.

In France, Bitcoin has long been considered unworthy, denigrated and even frowned upon. However, it is clear that the cryptocurrency is still present and the market is under considerable commercial pressure. The reason is increased demand. It seems people are willing to pay more for it.

Large companies are breaking down the barriers that separate their services in order to consider financial products from a digital perspective. Moral niceties like fiat money are just a reincarnation of classic assets. Therefore, these monetary systems carry the same flaws as the previous systems. Moreover, governments grow to believe that they control the interest of the general public.