Is BitCoin a way to launder money or a technology challenge?

As Bitcoin breaks new barriers and faces new restrictions, its role and potential is being discussed all over the world.

Is Bitcoin criminal as a way to launder money and avoid paying taxes? Is it profitable as an apportunity to invest money? Is it just a bubble and will it terminate soon?

Fears over tax evasion and money laundering are pushing the European governments to regulate the Bitcoin. The EU is planning to bring cryptocurrencies into the scope of anti-money laundering and counter-terrorism legislation, meaning that traders will have to reveal their identities.

So far, during the currency’s relatively short life, it has been anonymous, making it attractive for people trading drugs and other illegal items on the so-called ‘dark web’.

The new rules could come into force within the next few months and ensure that the platforms that allow users to trade the currency have to carry out due diligence and even report any transactions that appear suspicious.

It’s a major change and one that could either be seen as a clampdown on something that’s being exploited by criminals or as a stamp of recognition that cryptocurrencies are becoming mainstream, despite the lack of a state that back up its value.

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