One of the main objections regarding the use of Bitcoin is regarding the “relative” anonymity of its users; we use the term “relative” since although Bitcoin has several privacy measures, it is not a cryptocurrency that is characterized by being private 100% (as is Dash for example); however, this feature is mentioned and used in some government entities and agencies, to “attack” said cryptocurrency, mentioning that it can be a means used for money laundering or promotion of illicit activities such as drug trafficking, among others.


A curious fact that when Bitcoin is criticized as a means to finance illicit activities, there is a tendency to “minimize” the role that cash currently plays, which, since it is not banked, can be easily used by gangs and criminal organizations without Restrictions, only when said the money “enters” the banking system, can it just be “traced,” but as long as this does not happen, said the money can be used without any problem (outside the law).

Fix the problem from the root

To avoid money laundering and financing of criminal activities, banks must understand that it is not enough to restrict a means of payment. Still, that effective measures and policies must be implemented to regulate said activities, regardless of the means of payment used by the users; only in this way can the underlying problem be solved.

What measures can be taken?

One of the measures that can be taken is to “make official” the use of cryptocurrencies in different countries or states; for example, in the State of Wyoming in the US, a law related to banking licenses and cryptocurrencies have been implemented, which has allowed Different companies benefit by allowing them to process an official banking license, which allows them to acquire the same authority that US banks have to offer traditional regulated financial services, including the custody of Bitcoins and digital assets.

Another (a bit more drastic) measure is to enact laws that end anonymity in cryptocurrency transactions. If this measure is implemented, it will moderate people’s enthusiasm to use digital currencies in illicit acts, however, it has the disadvantage that it would also discourage the use of cryptocurrencies in the legal part; other less radical measures include imposing stricter licensing requirements for cryptocurrency processors, and extending different rules on money laundering to companies that work in currency conversion. There is also the possibility for tax authorities to be more flexible with Bitcoin, implementing more accessible rules, such as setting preferential rates or making it easier for users to declare their cryptocurrencies without fear.

What are governments doing about it?

Some governments are already using the blockchain ledger in which all Bitcoin transactions are documented to generate charges, such is the case of the arrest of a person in Los Angeles, USA, accusing him of laundering more than 300 million USD through a service that combines multiple operations with cryptocurrency wallets to hide who pays whom. Finally, it is said that international cooperation is vital and that allies with similar regulations could exert pressure, thereby boosting exchanges and collaborations between various countries in this regard.

What do you think about this topic? Do you consider that these security measures are sufficient?

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