• NOW

News

  • NOW
EU Report Implies Criminals are Too Stupid to Use Bitcoin

EU Report Implies Criminals are Too Stupid to Use Bitcoin

Are criminals too stupid to use bitcoin? That is what a July 4 European Union report suggested. This will not strike many people as obvious, though. One of the most common concerns touted by governments about bitcoin and other cryptocurrencies is criminals will use them to fund their activities. 

Also read: The Reason Why Bitcoin Miners Dedicate Time to Mining Empty BlocksEU Report Implies Criminals are Too Stupid to Use Bitcoin

The EU’s commission Staff document detailed, “While they (criminals) may have a high intent to use due to VCs characteristics (anonymity in particular), the level of capability is lower due to high technology required.” This low level of capability implies criminals lack understanding of cryptocurrencies and have little technological acumen.

Financing Terrorism with Bitcoin Requires IT Expertise and Tech Skills

After the report mentioned the low incidence of criminal use, it added terrorists may try to use “virtual currencies” like bitcoin to finance some operations. The report said the level of anonymity of virtual currencies provides a modicum of risk, because it plays into the hands of terror cells and other nefarious organizations. In other words, people with violent intentions can use these currencies in a secretive way to fund bombing campaigns or other violent activities. It currently seems unlikely, however, considering the technology is still developing/emerging, the report stated.EU Report Implies Criminals are Too Stupid to Use Bitcoin

“It is nevertheless important to mention that being currently a developing technology requiring IT skills and expertise, virtual currencies are not necessarily easy to use and the number of transactions is still quite low.”

Regulation Vulnerability in the EU

The biggest fear the EU report pointed out centered on the regulation status of bitcoin and other “virtual currencies.” The fact that these cryptocurrencies are essentially unregulated means there are few reporting and tracking mechanisms in place. The report concluded since suspicious transactions cannot be monitored, are borderless, international, anonymous, and no one has duty to report strange activity to the Financial Intelligence Unit, the risk of vulnerability for financial terrorism remains high.

The inherent risk exposure is also very high due to the features of the virtual currencies (internet, crossborder and anonymity). Finally, the sector is currently not organised well enough to receive guidance or relevant information on AML/CFT requirements. Consequently, the level of TF vulnerabilities related to virtual currencies is considered as significant/very significant (level 3/4)

Are criminals too stupid to use bitcoin or other cryptocurrencies? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


Need to calculate your bitcoin holdings? Check our tools section.

Tags in this story
bitcoin and terrorism, Bitcoin regulation, bitcoin security, crime and bitcoin, Cryptocurrency, European Union, government regulation, N-Featured, Regulation Europe, Virtual Currencies
Related
Tiny Block Advocates Speak Up After Veriblock 'Abuses' Bitcoin's Block Size
Tiny Block Advocates Speak Up After Veriblock 'Abuses' Bitcoin's Block Size

The BTC community recently celebrated the fact that Segregated Witness (Segwit) transactions accounted for 50% of transactions and bech32 transactions… read more.

Snowden: US Seizing My Book Revenue is 'Good for Bitcoin'
Snowden: US Seizing My Book Revenue is 'Good for Bitcoin'

Former U.S. National Security Agency (NSA) subcontractor Edward Snowden is being sued by the Department of Justice (DoJ) for his… read more.

Sterlin Lujan

Sterlin Lujan is a journalist, editor, speaker, anarchist, and essayist. He has been involved with cryptocurrency and Bitcoin since 2012. Sterlin is especially interested in the intersection of psychology and cryptography. He has written on behavioral economics in regards to innovative technology, and was one of the first to write about the emerging field of cryptopsychology on bitcoin.com.