> I'm not sure what point you're trying to make. The best I can make out of it is: lots of criminals use cryptocurrency and cryptocurrency has been used to get around capital controls so any use of cryptocurrency is suspect. This seems deeply unserious to me and doesn't even begin to engage with stablecoins.
The point I'm trying to make is that there's loads of dirty money in crypto (I think that's fair given all the ransomware). Banks/financial institutions who support crypto off-ramp are gonna be hard pressed to determine how much of the crypto assets they see are legitimate vs criminal.
So, the likely outcome of lots of crypto/stablecoin providers with fiat off-ramps is that it provides a way for this dirty money to get laundered into clean fiat/assets. This is gonna be a real headache for these providers, and I really can't see how they ever do due diligence/AML/KYC on all of this money.
That being said, dirty money has always and will always exist (barring some totalitarian global state) so this isn't a new problem, just one that I think will be concerning for financial institutions and regulators.
The point I'm trying to make is that there's loads of dirty money in crypto (I think that's fair given all the ransomware). Banks/financial institutions who support crypto off-ramp are gonna be hard pressed to determine how much of the crypto assets they see are legitimate vs criminal.
So, the likely outcome of lots of crypto/stablecoin providers with fiat off-ramps is that it provides a way for this dirty money to get laundered into clean fiat/assets. This is gonna be a real headache for these providers, and I really can't see how they ever do due diligence/AML/KYC on all of this money.
That being said, dirty money has always and will always exist (barring some totalitarian global state) so this isn't a new problem, just one that I think will be concerning for financial institutions and regulators.