Chief Scientist of Quebec has stated that Bitcoin is not a tool for illegal activities due to the transparent and public features of Bitcoin Blockchain. In fact, all transactions in Bitcoin are recorded and distributed within a global network.
20 April, AtoZ Markets – Rémi Quirion, the Chief Scientist of Quebec, has stated that public concern that Bitcoin is largely used for illegal activities like tax evasion and money laundering is somewhat exaggerated.
Chief Scientist of Quebec: Bitcoin is Not a Tool for Illegal Activities
According to the online media reports, the statement by l’Agence Science-Presse reads:
“Bitcoin is not above the law, nor is it a magnet for illicit transactions: it forms only a tiny part of the criminal money circulating around the planet.”
The statement also explains that thanks to the transparent and public features of Bitcoin Blockchain, it is not the perfect platforms to engage in the anonymous criminal activity. In fact, all transactions in Bitcoin are recorded and distributed within a global network.
In addition, the statement notes:
“The anonymity of Bitcoin is a myth, is no more transparent as money, because you have to go through a platform where you have to give personal information. At the limit, if the name is not his, we always know the address of the transmitter and that of the receiver.”
The statement also refers to a study from the Center for Sanctions and Illicit Finance of the Defence of Democracies Foundation. Reportedly, “dirty Bitcoins” only represent 0.61 percent of trade and conversion services in the period between 2013 and 2016. Following on this, the largest proportion in the same period has been accounted for 1.07 percent.
Due diligence is still important
Geneviève Bruno of the Quebec provincial police, Sûreté du Québec, has stated that money laundering through Bitcoin is “not an emergent phenomenon here and we do not have any records related to that.”
The agency goes on to state that allegations of tax evasion through Bitcoin are “anecdotal:”
“Most users do not have the skills for themselves manage their portfolios and exchange platforms or online portfolios are already subject to anti-money laundering rules…Since Bitcoin is transparent, it will be very easy to identify all the people trading on an online exchange or portfolio platform.”
In fact, the statement from the agency is mostly denying the status of Bitcoin as a tool for criminals. However, the officials also call for investors to remain cautious and carry out their due diligence.
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