According to the Chief Scientist of Quebec, Bitcoin has been used for money laundering and tax evasion. Recently, Christine Lagarde, the President of the International Monetary Fund [IMF] said that there should be more regulations on the use of cryptocurrencies to counter the illegal activities associated with it.
The note that was posted to the website of Quebec’s Chief Scientist Rémi Quirion also stated that Bitcoin is only a small part of the money made through crimes that are circulating in the market.
Bitcoin may not be the choice of anyone who wants to make transactions through it and not leave a trace. Unlike Bitcoin, Zcash and Monero provide the users with greater privacy during transactions, making Bitcoin less attractive.
The report states that:
“The anonymity of Bitcoin is a myth. [It is just as] transparent as money, because you have to go through a platform where you have to give personal information. At the limit, if the name is not his, we always know the address of the transmitter and that of the receiver.”
A study was conducted to analyze Bitcoin transactions from the year 2013-2016 by the Center for Sanctions and Illicit Finance at the Foundation for Defense of Democracies in Washington, D.C. The study stated, “so-called ‘dirty Bitcoins’ represented just 0.61% of all transactions and conversions over that timeframe, and just nine of the 102 suspicious accounts tracked accounted for 95% of all illicit transactions – 97% of which were used in online gambling or “tumbling.”
According to Forbes, the report emphasized that Quebec investors must be careful while purchasing Bitcoin due to the increased number of fraud, theft and hacking cases associated with Bitcoin.
Francis Pouliot, Co-founder Catallaxy, a crypto expertise center, said:
“He unequivocally declares that Bitcoin is NOT “unregulated” in Quebec in an overall positive note. BULLISH”
Anthony Pompliano, Managing Partner at Full Tilt Capital said:
“Don’t forget, the USD is still the preferred currency of criminals around the world.”
D.A. Raykhman, a Twitter user commented:
“There is an anonymous token that has been around for centuries. Every criminal and terorist is using it. It is called 100 dollar bill.”
Jared Thomson, a crypto enthusiast tweeted:
“And they have to take in consideration that criminals like drug cartels can’t buy anything with bitcoin. They have to change it back to fiat first to get use of it. And that’s not that easy. Such nocoiner need a bigger view on that.”
Subscribe to AMBCrypto’s Newsletter