Money laundering regulating bitcoin a ‘significant’ risk, finds govt review

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A supervision examination of a sovereign anti-money-laundering regime has resolved that a use of digital currencies such as bitcoin to hedge financial controls poses a “significant” risk.

The examination of a Anti-Money Laundering and Counter-Terrorism Financing Act 2006 found that facilities of bitcoin and other digital currencies “make them appealing to people and businesses who wish to utilize them for both legitimate and deceptive purposes”.

Currently a clarification of income in a act includes ‘e-currency’; however, that clarification does not constraint cryptocurrencies. E-currencies are tangible to embody digital income corroborated possibly directly or indirectly by changed metal, bullion or a thing.

The examination states that cryptocurrencies are “backed by an algorithm rather than a earthy thing”.

“This means if a stating entity was to sell over AUD10,000 value of bullion in sell for bitcoin there would be no requirement to contention a threshold transaction report,” a examination states.

Currently a usually slip of digital currencies is when they are converted to or from fiat currencies.

The examination concludes that bitcoin-style currencies should be brought underneath a protection of a AML/CTF legislation.

One change would be to enhance a clarification of e-currency to income that is not corroborated by a thing. The new clarification should not capture


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