Discussing UK law. Links: swarb.co.uk | law-index | Acts | Members Image galleries

Proceeds of crime : Crypto Currency

All matters involving criminal law

Proceeds of crime : Crypto Currency

Postby diy » Tue Feb 27, 2018 12:46 pm

I understand the technical concept of blockchains which underpin most crypto currencies, but I cannot for the life of me work out the basis of the value (edit: I get something is worth what someone will pay). That is a side issue, what I'm struggling with is how UK mortgage lenders are refusing to allow anyone who has traded in crypto currencies to use the proceeds to make up a deposit. Is this a ruse of the banks, to destroy crypto currencies, because they genuinely see the end of their commissions on money handling, or is there a real need for a mortgagee to show source of income, isn't the proceeds of crime?

I'd have thought that a lot of investment packages could not guarantee that there had been no proceeds of crime in the holdings. After all the whole point of money laundering is to swap your dirty money with clean money.

If I bought a rare commodities Exchange traded fund (e.g. gold diamonds etc), I bet statistically a certain %age of the fund was dirty. It seems nobody is blocking these?
My suggestions are not legal advice
User avatar
diy
 
Posts: 2719
Joined: Fri Nov 02, 2012 10:06 pm

Re: Proceeds of crime : Crypto Currency

Postby atticus » Tue Feb 27, 2018 1:04 pm

Anti money laundering/terrorist financing laws are requiring banks, lawyers, accountants to undertake ever more stringent checks and client due diligence.

For all I know, Bitcoin etc are where terrorists, drug dealers etc are putting their money.
User avatar
atticus
 
Posts: 20650
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Proceeds of crime : Crypto Currency

Postby atticus » Tue Feb 27, 2018 1:20 pm

Last edited by Hairyloon on Tue Feb 27, 2018 5:14 pm, edited 1 time in total.
Reason: Fix linky
User avatar
atticus
 
Posts: 20650
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Proceeds of crime : Crypto Currency

Postby diy » Tue Feb 27, 2018 3:18 pm

I am struggling to see the difference between:
1. I invest £10 in bittycoin and sell it for £10,000
2. I invest £10 in global/mishmash ishare/ETF and sell it for £10,000

In either scenario - I can't know if the £9990 profit came from a clean money source?

Or am I missing something. I guess (having read the above) that the one difference is that brokers can get jailed in 2. where as in 1 the transactions can be semi anonymous
My suggestions are not legal advice
User avatar
diy
 
Posts: 2719
Joined: Fri Nov 02, 2012 10:06 pm

Re: Proceeds of crime : Crypto Currency

Postby atticus » Tue Feb 27, 2018 3:39 pm

One is regulated
User avatar
atticus
 
Posts: 20650
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Proceeds of crime : Crypto Currency

Postby dls » Thu Mar 01, 2018 9:32 am

Atti is right.

Anti-money laundering works by imposing rules which make it difficult for those who have mucky money to put it into the system without adequate explanation. The unregulated system of bitcoin is a perfect place for money laundering. A criminal's haven.
David Swarbrick (Admin) dswarb@gmail.com - 0795 457 9992
User avatar
dls
Site Admin
 
Posts: 12514
Joined: Thu Nov 01, 2012 1:35 pm
Location: Brighouse, West Yorkshire

Re: Proceeds of crime : Crypto Currency

Postby Hairyloon » Thu Mar 01, 2018 10:55 pm

Bill Gates was saying that investing in Bitcoin kills people quite directly because it is so widely used by drug dealers & terrorists.
Something like that anyway. Sorry, I only caught part of the report and somebody was talking over it.
User avatar
Hairyloon
 
Posts: 10558
Joined: Thu Nov 01, 2012 3:12 pm
Location: From there to here and here to there... Funny things are everywhere.

Re: Proceeds of crime : Crypto Currency

Postby diy » Fri Mar 02, 2018 10:59 am

Some of the crypto's are doing interesting things with trade settlement platforms. There's a lot of interest in the Distributed Energy field, where a future might see people needing to buy and sell energy at different times and do away with the need for energy companies to aggregate. Effectively the bitcoin becomes a KWcoin.

Its fine of course until there is no buffer and the lights go out. Or people defraud the network.
My suggestions are not legal advice
User avatar
diy
 
Posts: 2719
Joined: Fri Nov 02, 2012 10:06 pm

Re: Proceeds of crime : Crypto Currency

Postby atticus » Fri Mar 02, 2018 11:20 am

Isn't that last sentence the entire point?
User avatar
atticus
 
Posts: 20650
Joined: Sun Nov 11, 2012 2:27 pm
Location: E&W

Re: Proceeds of crime : Crypto Currency

Postby diy » Fri Mar 02, 2018 2:18 pm

It would be easier to hack your feed in tariff or smart meter. But in any case we don't live in a world free from Financial fraud.
My suggestions are not legal advice
User avatar
diy
 
Posts: 2719
Joined: Fri Nov 02, 2012 10:06 pm

Next

Return to Crime

Who is online

Users browsing this forum: No registered users and 1 guest