Regulators have mixed feelings towards Bitcoins, a trend that most people have noticed over the past few years. At the same time, there is a growing number of officials who see Bitcoin and blockchain as “prosecution futures”, due to the technology making it easy to track funds. Whereas many people associate cryptocurrency with criminal activity, the opposite is becoming more apparent every week.
Law Enforcement Can Benefit From Bitcoin Technology
Most law enforcement agencies use the tactic of “follow the money” when it comes to criminal activity. When criminals rely on bank account transfers or remittance solutions, that process becomes a lot easier. But where cash is concerned- which is still the dominant form of criminal money – things become a lot harder.
To this very day, it is not possible to track large amounts of cash in a convenient manner. Granted, one could rely on informants, or keep an eye out for people with large bags who behave suspiciously. But those checks are only occurring at public places such as stations, airports, and bus stops. It is impossible to do so on a large scale without relying on mass surveillance and invade consumer privacy.
It is somewhat surprising to find out many regulators and law enforcement agencies see the benefit of Bitcoin as a global currency. If cryptocurrency were to become a mainstream solution – which we all hope for but it will take time – tracking payments suddenly become a lot easier.
To put that into perspective, the blockchain broadcasts transactions in real-time for everyone to see. While it does not disclose personal information, it is a digital trail that can be followed by anyone in the world. This is a big step forward for regulators who want to combat money laundering and terrorism funding, as these transactions will stand out relatively quickly.
Some regulators even go as far as calling Bitcoin “prosecution futures”. That is a rather interesting statement, as it seems to indicate officials feel confident they can track down criminals who rely on this popular cryptocurrency. If that is the case, darknet vendors should be very concerned right now.
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