ComputerWorldAU - Bitcoin On Financial Watchdog's Radar

bitcoinnews:

Rohan Pearce (@rohan_p) wrote a piece in Computer World Australia describing ways Bitcoin was flagged as a “potential vulnerability” as part of a July 2012 report on money luaundering by Australian watchdog AUSTRAC.  Excerpts:

“‘AUSTRAC is aware that digital currencies, such as those offered by Bitcoin, may become more attractive to criminal groups, particularly in response to tighter regulation and monitoring of established or traditional financial channels by both government and the traditional financial service providers themselves,’ [AUSTRAC CEO] Schmidt says.”
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“‘By not being able to easily trace either the criminal or the placement of money, and coupled with the issue of which country should criminal proceedings be brought in, it is appealing to criminals who want to quickly launder money,’ Chambers-Jones argues.”
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“‘By far the bulk of attempted money laundering activity continues to be undertaken through the mainstream financial system,’ Schmidt says.”
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“Chambers-Jones believes that while governments and law enforcement agencies are aware of the potential of virtual world money laundering, there needs to be political will to specifically regulate the area.  ’You need to get all countries to agree on a policy and this is going to be incredible difficult to get a consensus on because of the societal difference which underpin legislation,’ she says.”
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“‘No one country or body regulates and monitors the internet, and therefore no-one can control in the most part what goes on within the internet,’ Chambers-Jones says.”

- http://bit.ly/RUbenj
- http://www.austrac.gov.au/files/typ_rprt12_full.pdf
- http://bitcointalk.org/index.php?topic=100764.0 (Forum discussion for this report)

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