Bitcoin Is Not Used by Organized Crime Syndicates Says Hong Kong Government

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Bitcoin is usually accused by regulators, governments and central bankers as being a device for cash laundering by felony organizations, often with out presenting any proof. A brand new report from Hong Kong, a serious worldwide monetary hub and nexus for commerce between China and the entire world, spells this out clearly. 

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No Proof of Cash Laundering

Bitcoin Is Not Used by Organized Crime Syndicates Says Hong Kong GovernmentThe federal government of Hong Kong has revealed on Monday its 2018 Cash Laundering and Terrorist Financing (ML/TF) Danger Evaluation Report. The paper examines threats and vulnerabilities dealing with the town as regards to the advice of the Monetary Motion Process Drive (FATF), the inter-governmental physique that units worldwide requirements on combating ML and TF.

Addressing the difficulty of bitcoin, the report reveals that Hong Kong Police Drive monitoring signifies no obvious signal of organized crime or ML/TF in regards to the buying and selling of cryptocurrencies. Furthermore investigations and intelligence don’t recommend cryptocurrencies have been used or meant for use in different prevalent predicate offenses (e.g. medicine, dutiable items smuggling) or terrorist financing. “The menace degree is low.” The federal government did discover, nevertheless, that cryptocurrencies have been used as a pretext in Ponzi schemes or as funds for cyber criminals, principally blackmailers utilizing ransomware.

Not a Menace to Free Economies

Bitcoin Is Not Used by Organized Crime Syndicates Says Hong Kong Government
ATMs Close to Wan Chai Station

Apparently, the report additionally explains why using bitcoin shouldn’t be seen as a menace to governments that don’t attempt to restrict the monetary freedom’s of residents. “Hong Kong is likely one of the world’s freest economies with a vibrant overseas foreign money change market and no capital controls.” Cryptocurrencies “are subsequently not as engaging as in economies the place individuals might attempt to circumvent foreign money controls or search refuge from a excessive inflation price.”

The strategy of the Hong Kong authorities relating to fraud, as evident by the report, is that it’s sufficient to warn the general public to remain vigilant when coping with cryptocurrency funding gives and take motion solely towards precise crime. And in contrast to different governments within the area, Hong Kong sees no have to create laws to restrict the reliable use of bitcoin. It considers the present authorized and regulatory provisions referring to fraud and different crimes to be broad sufficient to catch offenses, whether or not involving cryptocurrencies or not.

Will this report affect the stance of mainland Chinese language authorities in any means? Share your ideas within the feedback part under.

Photographs courtesy of Shutterstock.

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