Re: bitcoin and money laundering

Getting harder to cash out large sum of bitcoin as all exchanges are now regulated.

Local Bitcoins then?

LBC sellers are technically suppose to comply with AML regulations, although many of them do not do so. You would probably need to sell over several trades if you wanted to cash out a large amount.

LBC users are in no way at all required to comply with AML regs any more than the seller of a used car is required to do so.

I have read news reports that LE has charged LBC sellers with AML violations when they sold to people who we're claiming to be using the bitcoin for illegal purposes

Fine.

Where's the beef?

Show us the links!

And please tell us just how a transaction which might appear to be illegal on it scae compares with a perfectly legal transaction between two ordinary citizens.

oh

It's "were" not "we're".

Wink

I have seen the report to. It was in Miami, this guy was charging 30%+ markup on trades to people. An undercover cop told the seller that he was going to use the bitcoin for illegal purposes and he was arrested for violating AML laws. I have also seen on the FinCen website that anyone who transmits any amount of financial instruments must follow AML laws.

Should be wary of buyer paying 30% premium.

It was the seller asking for these kinds of premiums. IMO the seller was targeting people who were trying to use bitcoin for illegal purposes and wanted to stay "under the radar"

IMO whenever you are making this kind of markup in an efficient market, you are almost certainly doing something that you shouldn't be doing.

This is more or less true. If you are willing to pay this much of a premium then it is very likely that you are going to ask the other person not to verify your identity. You have a good argument for them not to check your ID because they are making so much money from your trade.

I doubt if the seller is doing anything illegal here.