Bitcoin’s Next Challenge: Bitcoin Code

During its short existence, Bitcoin has successfully overcome several challenges, such as technical problems and internal wars. BTC has also withstood relentless persecution by governments and powerful financiers. Although Bitcoin is not illegal, it has an unjust reputation.

not the bitcoin code

Admittedly, the image of Bitcoin needs to be improved. Many still associate the crypto currency with cybercrime, drug trafficking, fraud and other illegal activities. Scandals, accusations and assertions that have been widely published in the mainstream media have helped to damage Bitcoin’s reputation. There are striking reports of stock market hacks, manipulations or illegal activities. But Bitcoin itself is not illegal. Dr. David Cowan describes BTC as follows:

Nothing is illegal about Bitcoin Code

With the controversy and confusion surrounding the crypto currencies, it is easy to forget that there is nothing inherently illegal in them. Bitcoin CodeĀ in fact, the data show that the use of bitcoin in illegal activities is almost negligible. In January 2018, Yaya Fanusie, Director of Analysis for the Foundation for Defense of Democracies’ Center on Sanctions and Illicit Finance (CSIF), published a study entitled “Bitcoin Laundering: An Analysis of Illegal Flows in Digital Currency Services. The study concludes that

Less than one percent of bitcoin transactions are used for illegal activities.

Nevertheless, Bitcoin’s unjustified, questionable reputation has hampered its adoption rate and chased away large investors.

Protective measures and controls will create confidence
The restoration of Bitcoin’s reputation is becoming increasingly urgent. More and more key players in the crypto space are discussing how to restore the reputation of Bitcoin and other crypto currencies. In his article entitled “Cryptocurrency: Restoring reputation for the future“, Dr. Cowan claims that the spread of crypto currencies is the key to eliminating illegal uses. Matt Bisanz, Financial Services Regulatory and Enforcement Associate at Mayer Brown, says:

We need to do more to build trust where crime is rare or has little impact on the consumer. If your credit card gets stolen, you won’t stop using it. It has almost no effect…

What they say about Bitcoin Profit?

Tom Robinson, co-founder and chief data officer at Bitcoin Profit claims that regulations and controls on crypto currencies will help restore the reputation of crypto currencies. Bitcoin has proven its robustness and resistance time and again. As Christian Ferri, President and CEO of BlockStar, put it:

As with any technology, hacking will be painful for some in the short term, but it will be an important driver for strengthening the cryptoecosystem to make it safer, which is crucial for mass adoption.

Ex-BTC-e operator Alexander Vinnik: Delivery to France?

As part of an ongoing criminal case that has attracted international attention, a Greek court today ordered the extradition of Russian cybercrime suspect and ex-Bitcoin BTC-e platform operator Alexander Vinnik to France.

Delivery to France?
Vinnik was arrested in Greece last year after the US issued an international arrest warrant. He was the operator of the BTC-e platform. According to authorities, he used his digital currencies to circumvent the law, launder money and cheat people.

His lawyer Ilias Spyrliadi appealed the Greek extradition decision. Vinnik pleaded innocent, saying he had done nothing illegal. He will remain in prison until a final decision on this matter, the Tampa Bay Times said.

Now the French authorities have contacted us. They accuse Vinnik of cybercrime, money laundering, membership of a criminal organization and blackmail. He is said to have laundered about $155 million using 20,643 bitcoin. He is also accused of having been involved in Mt. Gox – Hack. The extradition request comes as a surprise, as the Greek Supreme Court had previously approved extradition to the USA.

But the Russian authorities also applied for extradition to face up to cyber fraud. This case has turned into a kind of tug-of-war between Russia, France and the United States, all competing to be indicted in their countries.

His lawyer Spyrliadis said that a European arrest warrant would generally take precedence over others, putting France first in the prosecution of Vinnik. Spyrliadis added that in practice it is up to the Greek Minister of Justice to decide where he will land.

Alexander Vinnik’s arrest
In July 2017, Vinnik was arrested in Greece when the Financial Crimes Enforcement Network (FinCEN) announced a $110 million fine against BTC-e for violating anti-money laundering laws (AML) – the charge included a $12 million fine. Since then, the USA and Russia have been competing for his extradition.

In May of this year, after the US extradition request had stalled, an assassination attempt on Vinnik during his detention was thwarted by the Greek law enforcement agency. It is believed that the attack was committed by a person or organization who did not want him to testify in Russia.

Vinnik also applied for asylum, which must be processed first before the Greek courts can take a final decision on extradition. Although his application was rejected, he had also appealed this decision.