Is it a crime to hide the origin of cryptocurrencies?

Authorities tend to prevent the origin of cryptocurrencies from being hidden.

Is it a crime to hide the origin of cryptocurrencies?

Many question whether it is a crime to hide the origin of cryptocurrencies, since these were developed as decentralized currencies

The answer depends, since concealing the origin of cryptocurrencies if they are the proceeds of a crime is punishable. Do you have doubts? Contact us!

Today's cryptocurrencies among which we can find Bitcoin, Ethereum, Dogecoin, Ripple, are being used worldwide as a new method of payment. They are also used as a store of value and even as a form of investment. However, there are a number of functions of use that are totally contrary to the above and reside in illegal purposes such as committing a scam and money laundering. Faced with this situation, we are presented with the problem of the scarcity of existing regulations regarding the control of cryptocurrencies. However, international regulations have advanced to prevent all types of crimes related to the use of this innovative means of payment.

Criminal organizations and cryptocurrencies as a currency of exchange

To begin with, it is worth mentioning the origin of cryptocurrencies themselves. They originated as a decentralized form of payment, without the intervention of intermediaries. The problem is that many of their users think that this action is a guarantee of anonymity. This is not entirely true.

Governments are increasingly insisting on controlling cryptocurrencies and establishing protocols to track payments made with them. Although anonymous cryptocurrencies are legal in most countries, they are not legal in others. The use of cryptocurrencies for the purposes of money laundering or ransomware attacks is criminally punishable. The competent authorities in each country are fully focused on detecting the misuse of cryptocurrencies by their users.

In the United States, for example, the Tornado Cash protocol has been sanctioned, which made it possible to hide the origin and destination of cryptocurrencies and tokens.  It is therefore necessary to be aware of the regulations implemented in this area.

Current regulations governing the criminal purposes of cryptocurrencies

Almost all countries have implemented legislation to control cryptoassets in one way or another.  Authorities tend to prevent the possibility of concealing the provenance of cryptocurrencies.

In case you need to create a compliance model for your company, it is necessary to have a team of cryptocurrency lawyers. If you wish to maintain anonymity in certain cryptocurrency transactions, please contact us and we will outline your options.


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