FinCEN Files Remind Us That Bitcoin Is Still Not For Money Laundering

This week, a released cache of thousands of reports from major banks showed that these institutions ignored their own concerns and willingly moved trillions of dollars around the world on behalf of suspected terrorists, criminals and corrupt governments. But I think the real entry point from this revelation about the world’s foremost financial institutions is through the misappropriated reputation that Bitcoin has for money laundering.

Bitcoin has long held a reputation for facilitating dubious transactions — thanks to its pseudonymity and privacy protections, BTC was the currency of choice for the world’s most prolific darknet market, Silk Road. So, even though darknet market activity will probably always remain connected to Bitcoin (as we explained last year), this week’s bombshell report is another reminder that Bitcoin’s use as a tool for criminals is just another myth that might apply better to the world’s legacy systems.

Timeline of Bitcoin