Electronic currency: Is it provided for money laundering?

The immediacy, the anonymity and little or no tracking of the e-currency transactions, they play a double role: for many, is a synonym of freedom, for others, You can facilitate the laundering of proceeds of crime.

What is e-currency and how it works?

It is the method of payment that uses only electronic media, admitting to be negotiated in conventional currencies (weights, $, EUR, etc) and trying to trade between pairs without intermediaries and without being supported by a conventional CA (Central banks).

The most famous case of electronic currency is the of Bitcoin. Its operation is based on Cryptography, Since both the currency and the users that use it are protected by encrypted codes. Translation into manageable these codes only encrypted information can be done through the Bitcoin software.

The users can remain anonymous and work under the pseudonyms that have chosen to register for use of the Bitcoin network.

Only in the case of purchase of coins with cash and prior agreement will need direct contact between users, but the rest of transactions can make them through the application without needing to reveal identities.

Advantages that promote bitcoin

Both its advocates and representatives of Bitcoin, They claim that the “criptodivisa” has several advantages:

  1. Anonymity reinforces the security and privacy of users.
  2. Not depend on any country or Central Bank, You can use around the world.
  3. Immediacy: transactions are instant. When there are banks as intermediaries need at least several days.
  4. Promotion of new technologies.
  5. Access to a global market, without boundaries or limitations for geographical or political reasons.
  6. Low percentages of commissions.

Risks that attribute to Bitcoin

But this electronic currency also has many detractors. Most of them emphasize the following harmful characteristics of Bitcoin.

  1. Anonymity provides a level of impunity for the criminal transaction or among criminals.
  2. You can enable the money laundering.
  3. It encourages those who use this means of payment incurred in activities who want to hide.
  4. Do not leave a footprint that can be detected.
  5. It makes it impossible to control and supervision by the authorities.
  6. It precludes, not to leave records, that electronic fraud to be investigated.

Precisely Bitcoin Cryptography prevents handle reliable statistics, but some argue that it could allow for such serious crimes money laundering as the trafficking of children, child pornography, drug trafficking and other illegal activities of organized crime. Even estimates are discussed, not proven, of the washing of a million coins bitcoin coming from drug trafficking.

The relationship between bitcoin and corruption in Latin America

It is obvious that the institutional weakness and corruption are two of the region's most serious problems. Between the two, the prosecution of organized crime becomes less effective and large bags of misery are generated, crime and money laundering, as well as tax evasion.

According to Alejandro Rebolledo, While crime tends to innovate and streamlined, There are many States that are inefficient for being too bureaucratic, What makes them slow and clumsy in the prosecution of the crimes.

According to the Bitcoin Foundation, Argentina is the Latin American country with more on this virtual currency transactions. This country, along with Brazil and Colombia, they are those considered as permissive with Bitcoin according to the Foundation of the electronic currency. In Venezuela, the number of operators barely to the ten and in other countries there is no statement on the currency by national Governments.

There are very few countries that have taken measures against currency, as Viet Nam and Iceland. Colombia, on the other hand, It has limited itself to stating that the Government will not use bitcoin coins, but it has not begun the elaboration of any legal framework.

Do you want to protect your company from crimes such as money laundering?

Electronic currency: Is it provided for money laundering?
Electronic currency: Is it provided for money laundering?
Bitcoin is an electronic currency today, thanks to its immediacy and anonymity, leg lends criminal transactions, of laundering drug proceeds.
Colombia Legal Corporation
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