The end of Bitcoin? Now linked to terrorism, ISIS and "The Dark Web"

SpacePete · May 2, 2016

Pulling out all stops. This rhetoric is being coordinated across nations where reports linking Bitcoin to crime are "coincidentally" being released at the same time.

There is also mention of terrorist use of anonymous "prepaid instruments" like cash cards. That's one step away from cash itself.

Will terror attacks end bitcoin free-for-all in Europe?

A crackdown on terrorism financing in the wake of the attacks on Paris and Brussels will see European regulators tighten up the rules governing digital-only currencies like bitcoin and prepaid payment cards.

In June, the European Commission (the legislative arm of the European Union) is set to update its anti-money laundering rules to force virtual currency exchange platforms to check their clients are who they claim.

"The Commission proposes to bring virtual currency exchange platforms under the scope of the anti-money laundering directive, so that these platforms have to apply customer due-diligence controls when exchanging virtual for real currencies, ending the anonymity associated with such exchanges," the European Commission said in a news release in February.

Identification could take the form of a passport, official photographic ID or proof of residence such as a utility bill.

ISIS and the Dark Web

This follows reports the so-called Islamic State which claimed responsibility for the attacks on March in Brussels and November in Paris was receiving funding via the so-called Dark Web. This is the encrypted, hard-to-reach part of the internet where bitcoin or other digital-only currencies are the preferred payment methods.

"There is a shadow banking system that now exists around the world that is capable of moving unlimited amounts of money They (terrorists or criminals) know the banking system is well-monitored," Scott Dueweke, the founder of Zebryx, a digital identity consultancy, told CNBC via phone.

In October, a report from the U.K. Treasury and Home Office concluded digital-only currencies were already the preferred method of online payment for illicit goods like firearms and drugs. The report added that the money-laundering risk associated with digital-only currencies was low, but could rise if their use became more prevalent.

A few months later, in January, Dutch authorities arrested 10 people accused of running a bitcoin-laundering ring.

Pre-paid, no name

The EU also plans to toughen up on the identification requirements for using prepaid instruments, of which consumer prepaid cards make up the vast majority. These are not linked to a bank account, are topped up with cash and can include cards linked to a particular store.

It is believed prepaid cards were another means used by terrorists to anonymously finance purchases for last year's Paris attacks.

http://www.cnbc.com/2016/05/02/will-terror-attacks-end-bitcoin-free-for-all-in-europe.html
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billybob888 · May 7, 2016

Creator of online money Liberty Reserve gets 20 years in prison
May 06 NEW YORK
Before the virtual currency Bitcoin there was Liberty Reserve -- and its founder just got sentenced to 20 years in prison.
Arthur Budovsky, 42, ran an online digital money business out of Costa Rica called Liberty Reserve. The U.S. government contended that the whole thing was just a massive, $6 billion money laundering operation.................
Click to expand...

http://money.cnn.com/2016/05/06/technology/liberty-reserve-prison/index.html?category=technology

This should send a clear message to anyone who wants to create competition to the current government issued currency and the banking system

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The end of Bitcoin? Now linked to terrorism, ISIS and "The Dark Web"

SpacePete Well-Known Member Silver Stacker

billybob888 Well-Known Member Silver Stacker

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The end of Bitcoin? Now linked to terrorism, ISIS and "The Dark Web"

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