Cryptocurrency Does Not Equal Fraud! What Is the Truth?
Using virtual currency is not a crime. Recently, I came across a statement that deeply saddened me. A senior legal professional said, “Virtual currency transactions should be presumed to have fraudulent intent.”
At first, I was dumbfounded. We’re not in China, and even Hong Kong has embraced it. Where did this strange conclusion come from?
But then I realized, I can understand where this elderly person is coming from. Perhaps they have seen criminals using cryptocurrencies to scam and deceive innocent people out of their money. I can also understand that continuous incidents involving exchanges and cryptocurrencies might make older generations of legal professionals skeptical.
However, at the same time, we must not forget why bad actors would want to use cryptocurrencies. It’s because they are useful and efficient, just like any other form of currency used in daily life.
What saddens me about this statement is that this elderly person is only looking at the most primitive human emotions and generalizing from a single negative event. They are ignoring the reality of 99% of the other events.
I don’t believe that if criminals use fiat cash to launder money, it should automatically be assumed that “using fiat cash implies fraudulent intent.”
The reality is:
1️⃣ Bitcoin has become legal tender in El Salvador for two years.
2️⃣ Following El Salvador, the Central African Republic has also recognized Bitcoin as a legal currency.
3️⃣ The U.S. SEC will make a final decision on whether to approve the Bitcoin ETF applications from 11 financial giants, including BlackRock, on January 10, 2024.
If this statement were true, it would mean:
1️⃣ People and businesses using Bitcoin for their daily lives are engaging in fraudulent activities every day.
2️⃣ Overseas workers sending Bitcoin back to their families would be deceiving their loved ones.
3️⃣ The application for Bitcoin ETFs (including BlackRock) would be carrying out the largest-scale fraud in history because they are also purchasing Bitcoin.
But the reality is not so. The reasoning is simple:
I don’t believe that if criminals use fiat cash to launder money, it should automatically be assumed that “using fiat cash implies fraudulent intent.”
Differentiating between bad actors and tools is the first step that everyone can take. As for the rest, we shouldn’t force it upon others because not everyone can keep up with new trends. Just like my idol, Charlie Munger.
️ Further reading:
Charlie Munger, Warren Buffett’s “Right-Hand Man,” Passes Away at 99! He Criticized Cryptocurrencies as Harmful Poison that Only Causes Harm.
#Using virtual currency is not a crime.
#Bad actors using virtual currency for malicious purposes is the issue.
Opinion articles present diverse views and do not represent the stance of “WEB3+.”
This article is authorized for reprinting from:
Guokr Mr. Shell
Proofreading and editing by Gao Jingyuan.
