User:Hayleyithink/sandbox

Concerns of Unregulated Global Economy
As the popularity of and demand for online currencies increases since the inception of Bitcoin in 2009, so do concerns that such an unregulated person to person global economy that cryptocurrency denominations offer may become threats to society as a whole. Concerns abound that altcoins may become tools for anonymous web criminals.

Cryptocurrency networks display a marked lack of regulation that attracts many users who seek decentralized exchange and use of currency, however these very same lack of regulations have been critiqued as potentially enabling criminals who seek to evade taxes and launder money.

Transactions that occur through the use and exchange of these altcoins are independent from formal banking systems, and therefore can make tax evasion simpler for individuals. Since charting taxable income is based only upon what a recipient reports to the IRS, it becomes extremely difficult to account for transactions made using existing cryptocurrencies, a mode of exchange that is complex (and in some cases impossible) to track.

Systems of anonymity that most cryptocurrencies offer can also serve as a simpler means to launder money. Rather than laundering money through an intricate net of financial actors and offshore bank accounts, laundering money through altcoins stands outside institutions and can be achieved through anonymous transactions. Laundering services for cryptocurrency exist to service the currency Bitcoin, in which multiple sourced bitcoins are blended to obscure the relationship between input and output addresses.