Lots of people who’re into cryptocurrencies will see this FinCen leak as vindication and proof that banks are cash launderers. However, this might be used in opposition to cryptocurrencies…
See the proper evaluation of this information is that AML/CTF and KYC do not work. They are going to by no means work as a result of they attempt to management the *software* not the *felony act*. It is not the cash that’s illicit, it is using that cash to commit crimes.
I’ve talked about this extensively. Not solely is using cash as a crime-control mechanism ineffective, it has horrible penalties that enhance poverty for billions by creating financial exclusion. So it is not simply ineffective, it’s “Worse than Ineffective”
“Worse than Ineffective” is the title of a chat I gave about this subject. For the phantasm of unatainable safety and crime combating we get two apparent and unavoidable outcomes: billions lower out of the monetary system and massive corrupting energy given to regulators and bankers.
However regardless of this apparent fact, nothing goes to vary. Actually, this report might be used to *enhance* using controls and surveillance. In govt if one thing would not work, you do MORE of it. So this can end in stricter AML/CTF guidelines.
These new guidelines will even not work. These new guidelines will even corrupt extra bankers, regulators, cops and politicians. These new guidelines will destroy alternative for thousands and thousands extra folks. However they may provide the consolation of righteous rhetoric in opposition to evil whereas creating extra evil
As these new guidelines are utilized, banking will turn out to be even tougher for poor folks, undocumented folks and folks on the fringes of society. It will not cease criminals from criming. It would cease poor folks from rising out of poverty. It would make banks much more competition-proof
These new guidelines will make authorities surveillance worse and can erode democratic establishments. They are going to make it attainable for dictators to economically surveil, management, and ultimately extinguish any opposition. They are going to use US surveillance tech to impose monetary fascism
Then after all, the necessity and worth of open monetary programs based mostly on open, personal, and uncensorable cryptocurrencies will enhance dramatically. When all the cash on this planet has been intentionally damaged to serve this unachievable objective, the one cash that works is crypto
Increasingly folks might want to use cryptocurrency with a view to take part within the world economic system, as a result of control-currency would not work as cash. A medium of alternate cannot additionally work as a medium of management. They break cash to cease crime, though it’s a futile effort
That makes crypto-currency a systemic menace, to not the financial nature of nationwide cash, however to the management and surveillance system of geopolitical cash. Math cash would not play politics, which makes it mechanically “rogue” cash.
Open and personal crypto-currencies will not adjust to these laws, as a result of they CAN’T comply with out breaking each function and functionality they’ve. If some attempt to comply they should compete in opposition to gov-crypto and facebook-crypto (they may lose)
Then the struggle on money and the struggle on “illicit” cash turns into an all out struggle on the one cash that also works. The free, open, borderless, impartial, immutable, censorship resistant cash that crypto-currencies like Bitcoin provide
The one kind of cash (crypto) that poor, undocumented, oppressed, and managed populations can use will after all be attacked. However they won’t have any selection however to proceed to make use of cryptocurrency. Billions are already unbanked by fiat controls.
This FinCen leak is worthy of our ridicule as a result of it reveals the hypocrisy of those that argue that crypto-currency is for cash launderers. Banking *is* cash laundering on a large scale. However the resolution is to not tighten controls on cash. That will not work
The answer is to cease making an attempt to make use of cash (a software) to battle crime (human nature). However for those who assume the hypocrites will again down and undertake smart programs and legal guidelines that allow human commerce and financial inclusion, you might be incorrect. They are going to double down with much more management
This is not excellent news. That is the excuse they may use to double down on surveillance and management. To generate profits a software of bare political energy. Regardless of what number of billions these measures condemn to poverty.