FACT CHECK: Crypto is increasingly being used for criminal activity and is a haven for illicit…

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Because cryptocurrency is still new, we are often asked about the biggest myths surrounding it. It’s common for a new market or product to confuse people, until they get familiar with it. Think about Airbnb: the idea of staying in a stranger’s home seemed crazy until it didn’t.

One of the most widespread but false notions about crypto is that it is mostly used by bad actors for illicit financing.

Cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism,” says Treasury Secretary Janet Yellen.

It’s a tool of “kidnappers and extortionists” that is “contrary to civilization,” according to Berkshire Hathaway Vice President Charlie Munger.

Very few people are using Bitcoin to pay their bills, but some people are using it to buy drugs [or] subvert elections,” writes New York Times columnist Paul Krugman.

And President of the European Central Bank Christine Lagarde thinks it’s “a highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money-laundering activity.”

This is false. Let’s look at a few key data points.

The Facts:

The Facts:

The Facts:

This data is already paying dividends to law enforcement, who has teamed up with private analytics firms to analyze blockchain transactions to identify individuals involved in illicit finance and pursue investigations into the dark web, child exploitation, and even terrorist financing.

These examples illustrate that crypto is not a haven for criminal activity or illicit financial dealings, but a medium for a wide range of secure, trackable transactions.

Check out the original article here.
Author: Coinbase

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