The DOJ just released a report that explicitly says that use of privacy coins like Monero is a "high risk activity" and "indicative of possible criminal conduct".
So is using cash. Lots of things could be 'indicative of possible criminal conduct'. Thankfully, the US operates under presumed innocence until proven guilty. This attitude of people claiming you shouldn't seek privacy lest you 'look like a criminal' is disappointing. I expect better from HN.
> This attitude of people claiming you shouldn't seek privacy lest you 'look like a criminal' is disappointing. I expect better from HN.
"Indicative of possible criminal conduct" means more than just "looking like a criminal." That means, if you were to be arrested for something, your use of Monero might count as evidence that you were involved in criminal activity. Combined with enough other circumstantial evidence, it might even contribute to your conviction, even without a smoking gun. This would depend on the judge and jury, but it's worth noting.
I don't think it's "better" for people to ignore the risks of certain behaviors and pretend those risks don't exist. You apparently care a lot about optimizing a particular dimension: privacy. Recognize that other people have different mixes of priorities. Not everyone must agree with yours. Some people who disagree with you might even comment on this very site, as offensive as that is.
> Lots of things could be 'indicative of possible criminal conduct'.
Deliberately hiding the origin of funds is itself criminal conduct, though. It's true that AML statutes tend to be hyperspecific, because it's a difficult area to regulate. So areas like crytocurrency mixing are gray and uncertain even among law enforcement lawyers. It's not true, however, that there is an inherent right to unrestricted private transfer of money.
Bascially, the statement you're reading is not saying "Mixing is probably illegal because the money must have been illegal to begin with". It's saying that "Mixing is probably money laundering on its face, no matter where the money came from."
At some point governments are going to need to step in and clarify this with laws. But don't fool yourself: Crypto mixers are going to end up being subject to effectively the same reporting requirements that banks are. What you want (perfect financial privacy) you can't have, sorry. That ship sailed decades ago.
Ok, you aren't wrong, but let's try not to be too naive - unluckily what's good for you (privacy, flexibility, speed, ...) is good as well for the "bad" guys.
I guess that the final question will be if it's used more for "good" or for "bad" purposes (or maybe just if the amount of "bad" purposes surpasses a certain acceptable level).
(same thing about cash - I think that most governments keep introducing stricter rules about cash withdrawals/deposits/transfers)
There are many ways to account for this in a risk-based approach however. Asking for basic information about a customer's occupation and source of funds (as is common when opening a bank account) can adequately address ML/TF risks. You don't see exchanges freaking out over other higher-risk activities like onboarding PEPs, but they can do this with proper risk controls.
In reference to companies accepting it, not individual users. Come on man.
“Companies that choose to offer AEC products should consider the increased risks of money laundering and financing of criminal activity, and should evaluate whether it is possible to adopt appropriate AML/CFT measures to address such risks.”
droffel|5 years ago
asdfasgasdgasdg|5 years ago
"Indicative of possible criminal conduct" means more than just "looking like a criminal." That means, if you were to be arrested for something, your use of Monero might count as evidence that you were involved in criminal activity. Combined with enough other circumstantial evidence, it might even contribute to your conviction, even without a smoking gun. This would depend on the judge and jury, but it's worth noting.
I don't think it's "better" for people to ignore the risks of certain behaviors and pretend those risks don't exist. You apparently care a lot about optimizing a particular dimension: privacy. Recognize that other people have different mixes of priorities. Not everyone must agree with yours. Some people who disagree with you might even comment on this very site, as offensive as that is.
newacct583|5 years ago
Deliberately hiding the origin of funds is itself criminal conduct, though. It's true that AML statutes tend to be hyperspecific, because it's a difficult area to regulate. So areas like crytocurrency mixing are gray and uncertain even among law enforcement lawyers. It's not true, however, that there is an inherent right to unrestricted private transfer of money.
Bascially, the statement you're reading is not saying "Mixing is probably illegal because the money must have been illegal to begin with". It's saying that "Mixing is probably money laundering on its face, no matter where the money came from."
At some point governments are going to need to step in and clarify this with laws. But don't fool yourself: Crypto mixers are going to end up being subject to effectively the same reporting requirements that banks are. What you want (perfect financial privacy) you can't have, sorry. That ship sailed decades ago.
tcberry|5 years ago
zepearl|5 years ago
I guess that the final question will be if it's used more for "good" or for "bad" purposes (or maybe just if the amount of "bad" purposes surpasses a certain acceptable level).
(same thing about cash - I think that most governments keep introducing stricter rules about cash withdrawals/deposits/transfers)
sgp_|5 years ago
https://www.perkinscoie.com/en/news-insights/anti-money-laun...
john_alan|5 years ago
“Companies that choose to offer AEC products should consider the increased risks of money laundering and financing of criminal activity, and should evaluate whether it is possible to adopt appropriate AML/CFT measures to address such risks.”
CryptoPunk|5 years ago