U.S. applying anti-money laundering rules to digital currencies
Digitally encrypted cryptocurrencies are hot, particularly as consumer confidence in the current global money infrastructure wanes. So what exactly is a cryptocurrency? The most visible example, Bitcoin bypasses traditional banking systems and operates as an alternative to cash. It’s decentralized, virtual and somewhat anonymous, and was originally developed to handle transactions over the Internet. The currency units consist of a series of numbers that can be traded between accounts, or “wallets,” for services or goods; when it launched in 2009, Bitcoin transactions happened without any government interference (or oversight).
Today, Bitcoin’s not just popular with the average consumer; organized crime and the criminal element have figured out how to use it to efficiently launder money, just as they did with the original cryptocurrency, eGold. In fact, I recently wrote about a money laundering case involving Bitcoin and two secret servicemen who attempted to launder a considerable amount of Bitcoin stolen from Silk Road. For this reason, the U.S. is now applying the anti-money laundering (AML) rules initially written to govern traditional financial organizations to all digital cash companies.
Perhaps even more interesting is that. . . Click here to read the rest of this article on Medium.com.