The Chief Scientist of Quebec, Rémi Quirion, has published a report on Bitcoin, taking an in-depth look at the state of legality that Bitcoin faces on a day-to-day basis. It finds no direct link between Bitcoin and criminal activities.
Quirion disagrees with accusations such as that by BlackRock CEO Larry Fink who labelled Bitcoin as “an index of money laundering”, saying that Bitcoin’s distributed ledger technology has helped law enforcement agencies track down illegal activities with ease.
“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 reason: it is less attractive for anyone who wants to make transactions without leaving a trace,” said Quirion.
The Center for Sanctions and Illicit Finance of the Defense of Democracies Foundation’s study found that funds linked to criminal activities accounted for only 0.61% of money entering the cryptocurrency ecosystem.
The percentage of Bitcoin transactions as a whole related to money laundering has decreased over the last five years, from 1.07% to a minuscule 0.12% in 2016.
The report cited that Bitcoin was still unregulated, although the Quebec government insists that companies must obtain a crypto specific license before operating a cryptocurrency exchange in the country.
While these figures might challenge commonly-held views about Bitcoin, they come as little surprise to veteran Bitcoin users. Others argue that fiat currency, in particular, the US dollar still ranks highly as currency favored by criminals.