Bitcoin which has made
inroads in the traditional financial systems and users are actively using this
crypto currency for buying and selling products and services. Bitcoins is being
highly favoured due to its relatively low transaction charges and highly
privacy features. It is decentralised digital which means that no governmental
authority have any kind of control on its activities. Bitcoins users are always
advised against using it for any illegal purposes. Bitcoins users indulging in
such activities are punishable to the laws of their countries. Two bitcoin
users are facing criminal charges in Florida for money laundering.
Bitcoins Users Misuses Bitcoins in Florida
Two men in Florida had
been charged for trading large volumes of bitcoins using one of the reputable
Bitcoin exchange. They are charged under the state anti-money-laundering laws
after a high level of investigation conducted by the US Secret Service.
Mitchell Abner Espinoza
of Miami Beach was arrested following a sting operation done by an undercover
agent who had engaged him in a fake transaction for converting $30,000 worth of
hard cash into digital money ‘Bitcoin’.
Another person is a 29
year old Pascal Reid who was arrested after meeting the undercover agent in
order to exchange $30,000 into Bitcoins.
Charges Faced By The Two Bitcoin Users
The two bitcoins users
are charged under two distinct laws of Florida. The first is the Florida’s
strict anti-money laundering law which thwarts the residents from indulging in
money exchanges above $10,000. The second is for running an unlicensed money
transmission business. The exact Statute 560.125 forbids people from exchanging
money in frequent unlicensed money-transmission type transaction of
specifically more than $300 but less $20,000 within any 12 month period in
Florida.
It is considered that
could be booked under a felony of third, second or may be first degree
depending on the amount involved. The law states that the exchanging of more
than $100,000 in funds within 12 month period would be considered as first
degree felony. A fine generally amounts to twice of the currency value, which
could go up to $250,000 possibily.
Popular Bitcoin Exchange Unaware of This Development
All the bitcon
exchanges rely on its users to the laws in their countries when conducting the
bitcoin trades. And it is not feasible for them to look out for everyone
trading on their websites due to various reasons. But known of them promote the
illegal activities to be conducted.
The popular Bitcoin
exchange named Localbitcoins seems
to be unaware of this development. This bitcoin is highly popular among the
bitcoins users for its person to person bitcoin trading. It is headquartered in
Finland and it widely known online bitcoin trading website. It facilitates both
the online and in person bitcoin trade on its portal. Unlike the other bitcoin
exchanges which uses the online order books for completing a bitcoin trade,
this one allows the users to find each other and lets them handle the bitcoin
trades by themselves. Currently this website is adding about 1000 users each
passing day on its website.
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