9 votes

What are tainted coins exactly?

The term "Tainted Coins" is often misinterpreted as a measure of provenance. That's understandable considering the traditional definition of the word "tainted" coupled with the reality that many ...
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  • 101
4 votes

Is buying bitcoin with paypal legal without laundering concerns?

While I’m not an attorney, the website you describe would be considered a “money transmitter business” (MTB) which, in the US, falls under the jurisdiction of The Dept. Of Treasury FinCEN (Finacial ...
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3 votes

Launder cash using bitcoin atms

Most Bitcoin ATM vendors require you to identify yourself and track your buys and sells. This is done due to Know Your Customers and Anti Money Laundering regulation. You need to present the source of ...
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3 votes

What is a bitcoin tumbler?

I recently came across an article that clearly articulates what a tumbler intends to accomplish. The analogy they gave was a collection plate at a church: You may have seen collection bags that go ...
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  • 611
3 votes

What are tainted coins exactly?

A thought experiment, let's nickname it "Poisonous Gift": Doesn't matter what cryptocurrency exactly, just assume the transaction ledger works like Bitcoin's. Alice (wallet A) gets ...
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  • 31
3 votes
Accepted

Which data should be used in order to detect addresses to be used for fraud?

Fraud and money laundering are two different things. Fraud, or accepting or spending money under false pretenses, would be very difficult to detect on the blockchain because it requires outside ...
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  • 8,734
1 vote

Launder cash using bitcoin atms

You could spend it on miners, actually mine some bitcoins and then sell the mined bitcoins for fiat again. And then the IRS will tax the mined bitcoins because they consider it 'profit'. Using ...
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  • 538
1 vote

Can I cash out Bitcoin without proof of provenance?

In the US, nobody is likely to care if you assume a zero basis and pay capital gains tax on the full value of the bitcoins. If anyone asks, just explain that you acquired them back when they were ...
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1 vote

Can the fees in a coinbase be used to launder Bitcoins?

I want to expand on @raghav’s answer a bit (which is great! I agree with what he’s written), as I’ve thought about this before as well. I see two options for getting these transactions mined: pay a ...
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  • 17.4k
1 vote

Can the fees in a coinbase be used to launder Bitcoins?

While nothing stops you from paying a high fee to a miner and claiming it out of band, trying to launder any significant amounts through this would likely be discovered and linked fairly quickly. A ...
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  • 16.5k
1 vote

Is buying bitcoin with paypal legal without laundering concerns?

https://www.fincen.gov/sites/default/files/shared/FIN-2014-R002.pdf This ruling deals with your exact question.
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1 vote

Can Bitcoin help people commit money laundering?

It surely has some potential to help money launderers to conceal their identity from Anti Money Laundering regulation. Because a new wallet address could be generated at any time, without the ...
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