How to prevent illegal money laundering activities in ...

Can someone help me prove that this article is wrong!

Public awareness on Virtual Currencies in Sri Lanka

The Central Bank of Sri Lanka (CBSL) is aware of the growing interest in virtual currencies (VCs), both domestically and internationally.
The term “virtual currencies” is commonly used to refer to digitally created representations of value that are issued by private developers and denominated in their own unit of account. Common examples of virtual currencies are cryptocurrencies such as Bitcoin, Litecoin and Ethereum. Virtual currencies are not central bank issued
Virtual currencies such as cryptocurrencies use decentralised peer-to-peer digital networks to authorize transactions. Due to the absence of a centralized authority such as a Central Bank to guarantee the value of the currency and regulate transactions, there is no recourse in the event of any user or transaction related issues or disputes.
The value of virtual currencies is dependent on speculation and is not backed by an underlying asset or a regulatory framework. Due to this, virtual currencies may demonstrate major volatility. Similarly, there appears to be a high probability of virtual currencies being used in illegal activities. Further, though unintentional, their usage could amount to breaches of anti-money laundering and combating the financing of terrorism (AML/CFT) laws. Therefore, cryptocurrencies, in the present form, may pose significant risks in terms of financial, operational, legal, customer protection and security related risks to their users as well as to the economy.
It is hereby notified to the public that CBSL has not given licence or authorization to any entity or company to operate schemes involving virtual currencies, including cryptocurrencies, and has not authorized any Initial Coin Offerings (ICOs).

submitted by synthia331 to u/synthia331 [link] [comments]

For everyone worrying about Bitcoin-24, please read this.

First of all, if you are panicking: calm down. Because I don't think Simon is a scammer especially because he is easy to track down. And I doubt that he will decide to skip the Eurozone jurisdiction with a wallet full of stolen BTCs. Did anyone here ever gotten their PayPal account frozen? It's a pain in the ass and takes a while to sort out. For whatever reason (Simon says per request of of a German government agency) the Polish Bank locked their account.
Therefore your fiat money is safe, because even Simon can't get to it until this issue is resolved. I suspect that banks don't really like having e-currency exchanges as customers just due to the tremendous transaction volume and risk of fraud or money laundering,
hence they probably already were looking for a reason to cut him loose and when a flimsy official looking document from some German law enforcement agency came they jumped at the opportunity and locked his account which isn't exactly stellar but could be much worse. So while your fiat money is not immediately available, it should be safe.
I think the matter could be sorted out within a few weeks, why? Well obviously the alleged charges that lead to the suspension of the PL account weren't enough to warrant the immediate seizure of the Germany bank account (pretty sure you need an actual warrant for that rather then just a piece of paper with a official looking letterhead).
Also if Simon were facing serious charges he'd probably be in custody by now and not posting on reddit. Now as for the BTC: I think there are a bunch of links floating around to BTC24's fat wallets. They should also hold enough BTC to refund everyone. (Sry dont have the links handy) Now as for the trading engine failing. As far as we know it was buggy for a while due to Simons lack of expertise in the field of database transactions :) BUT (again all guesses/my interpretation of the situation) the actual amounts lost to this glich were so small enough that Simon covered them with personal funds (I hear he runs ASIC miners?) also larger amounts would probably be noticeable when doing his regular accounting.
As some of you know the same bug became much more apparent as the trading engine started choking under the increased load (maybe people looking for new places to trade? more bots hitting the API?). The shoutbox started filling up with people who saw their order fulfilled not once, or twice but 4 times (Pay for 1 BTC -> get 4).
Further proof: Simon started asking for help on StackOverflow (a QA page for programmers). While that in it self is not very confidence inspiring (btw seriously Simon, get a second Nickname for your SO profile :D) it is not as bad as it sounds.
Why? When this bug escalated to a degree where it was obvious that the trading engine started choking and malfunctioning and therefore became exploitable there was one safeguard in place that prevented disaster: the hot wallet was empty (as others that were there can confirm). While getting free BTC is exciting in the moment it was NOT possible to withdraw those to a wallet of your own. Shortly after the exchange was shut down.
What happens now?
(on a technical level) A database rollback is basically guaranteed to happen, which will restore your legitimate balance pre trading engine craziness.
Simon will have to fix the faulty code (Simon if you happen to read this I offered my help by email)
He will have to sort the legal problems out, which will be a huge pain in the ass as the German fiscal authorities (aka local IRS) have a reaaaaaaaally hard time understanding internet based businesses much less magic internet coins lol.
This was supposed to be a reply but I think this warrants a separate post but the point I was going to make (albeit within a lot less words) is:
Give him a break and lay off with the lawsuit (and as this is the internet probably also death) threats
He is fairly young (24 I think), a real person residing in Germany who ran the exchange with minimum fees. Yes he fucked up and got fucked. But the last thing this guy needs right now is people threatening to send him into personal bancrupcy by burring him in civil suits.
Edit: I didn't mean to imply that just because he is young he should get a free pass but rather that he has a huge incentive to fix this unless he wants to spend the rest of his life hiding from debt collectors. I know this one will be controversial but I feel that I have to bring this up: Such an outlook can drag you down, like down down and whether you care for him as a human being or not if he, god forbid, looses hope he wouldn't be the first to collapse under pressure and make bad decisions which will benefit no one. Sorry to pull this card but we (the hackestartup community) have seen it way to often recently.
FYI I also have about 1.5k EUR deposited with BTC24 but I am confident Simon will be able to sort this out. Pretty sure he will be able to alleviate the problems with BTC24 in a timely fashion (unless course you insist that he should rather await trial while locked up)
tl;dr don't panic, stop harassing Simon (including but not limited to threads of any kind (esp. legal , life), email spam etc) so he can focus on bringing back BTC24
FYI, not affiliated with BTC24 in any way except that I still have 1.5k EUR there. I am just someone who is fed up with this fucking panicking and because Simon is busy with more important stuff (I hope) I just want to help worried users understand the situation.
My credentials (if that helps): I am a Web Developer (Python, PHP, CoffeeScript) and a few years ago I was working on something in the same field and experienced and/or witnessed the same problems Simon is facing now.
TL;DRTL;DR don't panic, we've had enough of that recently
also (constructive) criticism welcome and appreciated
UPDATE FROM SIMON: Little Update! As some of you know, I had some problems with the German bank accounts in the past. I have solved the problem with moving to Poland and we had also never problems with them. Why does this all happen? The "Deutsche Bank" in Germany had some phishing attacks / hacker and some funds where send to my bank account. This attacks does not stop on the "Deutsche Bank", because it seems, that it is a very stupid bank! So they closed my bank accounts in Germany and I got an invite from the German police, to tell them, what I am doing. After that I had no problems but my Bank accounts where closed. (this all happen in the start time of bitcoin-24) In my opinion the problems where fixed. I moved to poland and make all business on the BZWBK. The Germans are now fighting against me and the "Deutsche Bank" has still the same problems, that people are sending me money from stolen bank accounts! THATS NOT MY PROBLEM! The only thing I can do now is to not accept payments from the "Deutsche Bank". The Germans think now, that I am trying to get money with this methode. So they look now, where I have money and try to close all bank accounts. Why in Poland? The Germans think, I am a criminal guy and they will stop the crime. They asked the poland for help and they closed my bank account in poland. I have 7 days to make something against this, otherwise my bank account will be closed for the next 3 month! I am very sure, that we can get back the bank account in the next time. I will not give you a promise, but it is possible, that I will get back the bank account in the next week.
submitted by i_lurk_for_living to Bitcoin [link] [comments]

Fla. Bitcoin Case Tests Money Laundering Limits How To Launder Bitcoin  Silicon Real Bitcoin & Crypto - A Haven for Criminals & Money Launderers Bitcoin - Anti Money Laundering Bitcoin used by terrorists to launder money?

Malaysia Cites Terrorism Fear. Joseph Chin of The Star Online reports, “Bank Negara Malaysia is developing the regulatory structure for digital currencies, and from 2018 persons converting crypto currencies into fiat money currencies will come under anti-money laundering law,” he notes. Such persons “would be designated as reporting institutions under the Anti-Money Laundering, Anti ... In order “to prevent the abuse of the system for criminal and unlawful activities and ensuring the stability and integrity of the financial system,” Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim stated 22 November 2017 that those trading in cryptocurrencies will be placed under the country’s existing anti-money laundering laws. Malaysia to Place Bitcoiners Under Existing Anti-Money Laundering Laws In order “to prevent the abuse of the system for criminal and unlawful activities and ensuring the stability and integrity of the financial system,” Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim stated 22 November 2017 that those trading in cryptocurrencies will be placed under the country’s existing anti ... However, law enforcement agencies are more determined than ever to tackle crime by cracking down on money laundering. And many have their sights firmly trained on betting operators. Published in July 2015 and available now, The Law of Bitcoin is a response to the great interest and need for a text focused on the law of cryptocurrencies, especially Bitcoin. This book is the first of its kind delving into cryptocurrency law in four jurisdictions: the United States, the United Kingdom, Canada and Germany. ...

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Fla. Bitcoin Case Tests Money Laundering Limits

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