quotingElliptic just published a new report on how cartels use cryptocurrencies to launder drug proceeds, and I have a few questions.
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First, if you, an unbiased person, take a look at the above graphic by Elliptic, do you come to the conclusion that "unhosted wallets" are what enable cartels to launder money through cryptocurrencies?
Or could it be that the actual problem is that cartels still somehow manage to deposit their cash in the financial system, despite extensive AML/CFT frameworks imposed on banks?
Secod, if these frameworks are already exploited by cartels, can you outline precisely how imposing these same AML/CFT regulations on "unhosted wallets" would stop cartels from exploiting them – and not just impose unproportionate burdens on the average user?
Given what Elliptic has outlined in their newest report, lawmakers should be extremely wary of relying on for-profit marketing materials to inform their decisions, and keep in mind that the expansion of AML/CFT frameworks to "unhosted wallets" would drastically enlarge such firms' addressable market, constituting a clear profit motive – while likely doing nothing to stop actual crime.
Full story:
https://www.therage.co/new-elliptic-report-are-unhosted-wallets-really-the-problem/
Muuny on Nostr: Unfortunately this is a clear case of some company carrying water for the government ...
Unfortunately this is a clear case of some company carrying water for the government push to not blame themselves for banking security, and simply blaming someone else. Which of course the government would do, because OFC it would. For someone to shut down the payments on 'stable coins' is trivial and much easier than a bank. Consider how hard it is to make a bank that uses any 'crypto' and you'll figure out all you need to know.