Despite the fact that crypto seems cool, the purpose of crypto is to hide things. Cryptocurrency could be the last resort for the Russian mafia state.
To save Ukraine and stop the Russian mafia state, freeze crypto too. Perhaps it’s just a cool idea for the rest of us? But deep down inside we know that there is something fishy about cryptocurrency and its purpose. To stop Putin from doing whatever he pleases, let’s also ban all cryptocurrencies in order to protect Ukraine!
It is true that the blockchain-powered darling of speculators – and now even Larry David – allows for a certain level of “freedom,” ensuring that transactions are not traceable by regulators and governments. Sure, most of us like the idea that we can conduct our business in our own way, away from the prying eyes of those who are considered to be hostile to our interests.
At some point, however, we have to face the fact that the main beneficiaries of invisible, seamless money transfers are criminals.
In the world of online crime, anonymous cryptocurrencies are the preferred method of payment, wrote the Financial Times last year.
This is because they are perceived as making the transaction more secure, and by not requiring any personal information to be shared. To avoid detection, some cybercriminals have been laundering stolen credit card numbers through online casinos for years.
Crypto is, in effect, that second ledger kept by mafia accountants before crypto was invented – one for the authorities and one to settle scores.In one sense, then, crypto investors are becoming accomplices to, um, crimes since non-criminals can now effectively participate in the ledger?
Because traditional avenues for hiding money are disappearing, cryptocurrency markets are surging. Apparently driven by Russian investment, Bitcoin saw its value rise 9.3% during the last week.
It’s therefore no surprise that the most visible holdouts in the international effort to financially and culturally isolate Russia during the Ukraine crisis are cryptocurrency exchanges (this despite the plea of Ukraine’s Vice Prime Minister and Minister of Digital Transformation to freeze Russian accounts).
FIFA soccer and the Metropolitan Opera, BP, Shell Oil, and SWIFT have all begun cutting ties with government that the New Yorker’s Masha Gessen has described as a “mafia state.” As Paul Krugman recently wrote in The New York Times, “Russia’s hidden foreign wealth amounted to 85 percent of its gross domestic product in 2015.”
Fortunately, Western governments are at last targeting all of that stolen wealth with some degree of earnestness. Even assets believed to be controlled by Putin himself are now frozen.
Kleptocrats, however, didn’t become multi-billionaires by simply folding when they were challenged. You can be sure that dirty money is always trying to wash itself clean. Russian money appears in all shapes and sizes because Don Corleone wanted his son Michael to become a senator.
The empty luxury apartments of Manhattan, the Premier League soccer teams, the fleets of yachts owned by shell companies, are all hiding the illicit Russian money escaping seizure.
Cryptocurrency markets are booming now that Russians can’t hide their money in traditional avenues. Last week, Bitcoin’s value jumped 9.3%, driven by Russian investment. As Vice’s Motherboard reported on February 28th, “Binance, the world’s largest crypto exchange, said it would be counterproductive to ban users unilaterally.”
There is no doubt about it – cryptography exists primarily to conceal things. By keeping this possible channel open for Russia’s mafia state, we are giving it a refuge it certainly does not deserve.
Freedom with a capital “F” – Democracy, Tolerance – it’s time to eliminate freedom with a small “f” for thieves and scoundrels.
Via this site.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
