Bitcoin has been identified as one of the means by which criminal organizations make their way into the new era of digital.
Especially The undisputed king of cryptocurrency is causing agents to worry about verifying the legitimacy of transactions and network security who often accuse them with governments of being a danger.
We know that Bitcoin is a very valid tool, whose birth revolutionized the economic system through dynamic and continuous change, but it often happens that even good intentions end up pandering to criminals.
I remember an old alert from IlSole24Ore a few years ago in which he wrote clearly about the danger cryptocurrencies can pose to legitimacy:
“It may be hypothetical, but the damage to the economy, the fight against money laundering, organized crime and international terrorism is real,” he added.
Now the question we have to ask ourselves is simple: Has the danger been contained?
The answers are different and often contradict each other. If we then consider that Bitcoin has been followed by countless other digital currencies, we certainly cannot expect things to get any easier for the supervisory authorities.
Surprisingly, the amount of illegal activity is increasing, which worries the whole world.
If we read an article by Agenzia Italia, we note how the number of companies specializing in monitoring illegal actions is increasing unprecedentedly:
“In 2021, more than $14 billion will be transacted through accounts linked to criminal activities, which is a doubling of $7.8 billion for 2020. Analytics firm Chainalysis calculated.”
This raises the question of whether the rise of Bitcoin was a good thing or just a fantastic opportunity that turned into a catastrophic effect on economies and governments.
But It seems that the use of digital currencies for illegal purposes is spreading like wildfire and as this sector grows, it risks getting bigger and bigger!
This raises a huge problem for platforms and investors: institutions can see only useful cryptocurrencies as an enemy and ally of criminals, and perhaps decide to opt for a complete ban, as already happened in China at the beginning of 2021.
Indeed, let’s not forget that many countries have already banned Bitcoin and its cohorts like the Asian giant, as we learned from CorCom:
“According to the Law Library of Congress, nine countries around the world have taken the same drastic measure (including Algeria, Morocco, and Egypt). Several other countries have de facto bans (such as Saudi Arabia, Libya, Turkey, and Indonesia) thanks to radius enactment of laws that implicitly include currencies Digital. Most of the banned countries are in Africa, the Middle East and Asia.”
But what are the claims that Bitcoin can be a dangerous weapon in the hands of the mafia and criminal associations? Organizations around the world have been talking about it for some time now.
Anonymous Bitcoin: Is It Really Invisible?
For those who are still wondering, yes it is, but it is not impossible to track it down.
to be precise, When trading bitcoins, it is necessary to open a digital wallet to which identification documents must be associated most of the time.
So, you understand how difficult it seems to be to delete your name or nickname, making the transactions we are considering completely anonymous.
However, unfortunately, there are two alternatives: buy Bitcoin with cash and open digital wallets under a pseudonym.
Keep in mind that we are talking about illegal practices, but they make it very difficult and very cumbersome to trace the origin and nature of the transaction in question, whether legal or illegal.
Among other things, it should be remembered that hackers around the world are also able to make it more complex to track down digital wallet owners, just as an article on Fastweb explains:
“The wallets used by hackers are many, they often change owners, they are opened and closed frequently, they are always used to buy other cryptocurrencies, and the most “secret” platforms that exist are always used to make money transfers.”
Money Laundering: Here Are the Bitcoin “Mixers”
We all know that even with traditional currencies, the economy will always be vulnerable to illegal activities that will unfortunately affect its legitimacy.
When we talk about BitcoinBut, We should know that he is often accused of using it for money laundering.
If before the police had a headache of their own about it, today the situation has worsened!
What crime agents have invented is incredible: in practice, there are sites that act as “mixers” where users put in an amount of cryptocurrency and withdraw exactly the same amount, so that it becomes practically impossible to trace the origin of the recycled capital.
In The Fortune, here’s how he describes the phenomenon that made the Tornado Cash platform fortune:
“A user can deposit their own Ether, wait a while, and then withdraw a different Ether, as long as they provide the random key generated by Tornado to prove that they are the original depositor.”
Organized crime has managed to take money laundering to another level with Bitcoin & Co.New and problematic.
Bitcoin Yes, but that’s when decentralization becomes dangerous!
Unlike legal assets, which rely on private entities and government institutions, or fiat currencies regulated by central banks, cryptocurrencies have no control over them.
Defi, which is associated with the absolute king of the crypto world, Bitcoin, has the main advantage of being available to everyone, without particular differences or biases.
This privacy Too liberal forA makes it an ideal target for anyone who wants to pass government checks on handling their moneycreating real financial chaos that over time increasingly risks escaping from countries that have long been associated with banking institutions.
What will happen if the state is no longer able to bring the economic and financial apparatus under its control? Chaos, chaos, and perhaps the spread of scams and fraud within the financial circle.
This is exactly what the mafia and organized crime feed onaware of the very useful tool in their hands.
After all, just imagine being able to use cryptocurrencies like Bitcoin to make exchanges on the web that only have to be authorized by the sender and receiver, not any third party.
Fast and efficient: that’s why the mafia loves bitcoin so much!
In an article published in Giornale di Sicilia, we read about the anti-mafia interest in cryptocurrency and the undisputed king of the market, BTC:
“Blockchain technology transmits the same principle to the digital world. But without certain rules and effective control systems, this is the warning of the Anti-Mafia Directorate, and there is a risk that crime can infiltrate a market that is set to grow more and more in the coming years.”
Law enforcement is pointing the finger at the entire industry, including NFTs that have proven far more indomitable than expected.
Those who are familiar with the blockchain, in fact, know that once a transaction is initiated, it can be traced back to those who have the skills, but the speed and lack of intermediaries such as banks or financial institutions greatly facilitates criminal trade.
That is why all the anti-mafia began to emphasize more and more the spread of the problem not only in Sicily, but in the world!
Bitcoin Funding Supports Terrorism
To be sure, one of the main focus activities of the institutions is terrorism.
No one can allow any form of payment to facilitate and finance extremist groups who have already set fire to countries all over the world.
Remembering it may seem trivial, but for many governments it is not, especially the Indian government as reported by Bitconomist:
“Nirmala Sitharaman, India’s Finance Minister, made a compelling case on Tuesday in favor of global crypto regulation in order to reduce the risks of money laundering and terrorist financing.”
Certainly digital currencies will have an impact on the global economyIn fact, India launched the digital rupee in February 2022But that doesn’t mean letting others go free.
No one can favor a faster path for the spread of terrorists and their financial operations, not even Bitcoin, Strict regulations and penalties are badly needed.
Not just Bitcoin, but many other cryptocurrencies are cause for concern. Example? Monero!
In addition to the more famous cryptocurrencies, in fact, we have many other currencies that are used for large-scale and widespread fraud, or that may become more and more a tool of organized crime.
If we read reliable sources on the internet and cryptocurrency crime, we will end up facing Monerojust to give an idea.
This digital currency uses the same proof of work as Bitcoin, but it adds an additional security: it only allows the two components of the transaction to see the amount.
As reported by Cointelegraph in fact, Monero has been favored over the king of cryptocurrencies on criminal exchanges:
“New research finds that demand for Monero ransom payments (XMR) has increased in the past year, as attackers add rewards for Bitcoin (BTC) payments ranging from 10 to 20 percent.”
In short, Monero is preferred for more privacy.
At this point, we must be careful because cryptocurrencies like BitcoinHe knows it, They risk being overly restricted or banned if institutions end up fearing them more than they benefit.
And who will influence if not all the enthusiastic investors in this sector?