Chief Scientist From Quebec Debunks Illicit Use Of Bitcoin Claims
Quebec’s Chief Scientist, Rémi Quirion just released a document that disproves and debunks the popular idea that Bitcoin is mostly used for illicit transactions.
As Mr. Quirion puts it, the many accusations that Bitcoin is mainly used for money laundering and criminal activities cannot be backed by hard facts.
Quirion acknowledges the fact that Bitcoin can allow for greater anonymity when doing transfers but says that the cryptocurrency does not provide the total anonymity required for committing illicit acts.
In fact, he argues that the public nature of Bitcoin’s blockchain actually makes it difficult for anonymity since all transaction remain public and transparent.
Additionally, Erwan Joncheres, a cryptocurrency analyst is quoted in the document that Bitcoin does not allow for actual anonymity. This is mainly because users still have to go through a platform where they have to give their personal information and which is recorded by a third party.
The paper also points to a study conducted by the Center for Sanctions and Illicit Finance of the Defense of Democracies Foundation.
This study analyzed Bitcoin transactions done between 2013 and 2016. Their analysis revealed that only 0.61% of the transactions made were thought to be associated with illegal acts. It also showed that the illegitimate transactions were coming from concentrated sources, with 95% of these illicit transactions being done by only 10% of the anonymous traders. This means that all the claims about massive illegal transactions by Bitcoin should be questioned.
Bitcoin Cannot Be Used To Evade Taxes
Rémi Quirion also states that tax evasion and Bitcoin cannot work hand in hand. He pointed to a statement by Karl Lavoie, a Canada Revenue Agency Communications Officer which stated that Bitcoin was still money and people still had to declare it when tax time comes.
In a statement, Mr. Jonchères said
I think that tax evasion and money laundering are anecdotal on cryptocurrency networks. Since bitcoin is transparent, it will be very easy to identify all the people trading on an online exchange or portfolio platform.
The conclusion of the document states that Bitcoin is not above the law nor is it used much for illegal transactions, unlike the popular myth that surrounds it. Illegal transactions are only a small part of the trades made on the network and the blockchain is less attractive for criminals since it leaves a trace to follow.
AuthorKate Leaman
Kate is market industry expert who has spent majority of her life on wall street, she has thought to have a knack at picking the right stocks to invest into. With the rise in cryptocurrencies she has is now able to use her expertise to a new market and give us insights on what we can expect in the present and the future.
