The cryptocurrency industry has faced a lot of resistance mainly from governments of the globe for several reasons. One of the main reasons given is that cryptocurrencies can be used for money laundering and lawmakers have proposed a complete ban several times. Some data, however, reveal information that is contrary to this belief.
Research conducted by research firm Messari reveals that more U.S Dollars have been used to launder money than Bitcoin. Precisely, the data reveals that the U.S Dollar has been used in money laundering 800 times more than Bitcoin. “For every $ in BTC spent on the darknet, at least $800 is laundered”, it states.
This is a rather disturbing revelation as Bitcoin has been attacked by several government officials lately. United States President Donald Trump said earlier this month that Bitcoin has no value and unregulated cryptocurrency can be used for unlawful behavior like drug trade and others (including money laundering).
The U.S Treasury Secretary Steven Mnuchin expressed concerns about cryptocurrency just days after Trumps’ tweet about Bitcoin. Again, it was concerned on what cryptocurrency can be used to do on the darknet despite the fact that the U.S Dollar is used to commit the same illegal acts more than Bitcoin.
This data could be invalidating the claims that Bitcoin is mainly used for criminal activities. As a matter of fact, transactions using Bitcoin are more traceable than any fiat and so can be more easily traced than transactions in U.S Dollars.
The crypto community considers such criticisms as publicity for Bitcoin and the crypto industry as a whole because it means the industry is important enough for the U.S government to give an opinion on. With the pressure to regulate the industry mounting, it might be a matter of time before the industry comes under full regulation.
Some are however of the opinion that the government might just be afraid of what Bitcoin could do to the U.S Dollar rather than being concerned about money laundering as regulation hasn’t succeeded in curtailing the situation.