Bitcoin money laundering is not illegal as New York state judge rules Bitcoin is not a currency

Golden Finance News - A judge in New York State ruled that Bitcoin does not fall into the category of legal tender in an anti-money laundering case. U.S. District Judge Hugh B. Scott ruled that Bitcoin money laundering should not be included in the crime of money laundering under the anti-money laundering law in Buffalo, New York. He believes that Bitcoin is more like a commodity than a form of currency.

US Judge Hugh B. Scott believes that Bitcoin money laundering should not be included in the crime of money laundering. Image source: Golden Finance

According to local news reports, he believes that money laundering charges involving Bitcoin should be dropped because Bitcoin is not legal tender. Scott is not the first judge in the United States to rule that Bitcoin is not money.

The judge took a different opinion

In a bitcoin money laundering case in Miami last year, Miami-Dade Circuit Judge Teresa Marie Pooler said,

“Bitcoin’s monetary attributes are very clear, and even some people in the region have a certain understanding of Bitcoin’s monetary attributes, but Bitcoin still has a long way to go before it can truly become a legal tender, and it is still the equivalent of money.”

In another case in Manhattan last year, U.S. District Judge Alison Nathan rejected a motion by a bitcoin exchange to dismiss allegations that it had illegally laundered bitcoin without a license.

The alleged participants in the Bitcoin exchange believe that Bitcoin is not money, so Bitcoin money laundering is not illegal. However, under US federal legislation, any unlicensed currency exchange business is illegal.

Bitcoins are becoming more and more accepted, so they can already be used to pay for goods and services, and can also be purchased directly from exchanges using a bank account. They are therefore used as a monetary resource, as a medium of exchange and as a method of payment.

U.S. District Court Judge Alison Nathan rejected the Bitcoin exchange's request to rescind the deal. Image source: Golden Finance

Federal agencies are fragmented

There are also different views within the U.S. federal government on the topic of Bitcoin money laundering.

The IRS defines Bitcoin as an asset, not a currency for tax purposes. In contrast, the U.S. Treasury Department classifies Bitcoin as a decentralized virtual currency.

Currently, the anti-money laundering case in Buffalo, New York has been appealed, and the local judge can express a different opinion.

Local judges can express different opinions on Bitcoin money laundering. Image source: Golden Finance

Scott recognizes the value of Bitcoin, but in his opinion, it does not make them money. He defines currency as a medium of exchange or financial instrument that is assessed value, regulated and protected by the government.

But Bitcoin is unregulated, with no government or central authority backing it. Scott points out that Bitcoin is designed to escape entanglement with sovereign states.

He said money is more than a simple tool of exchange designed by people in financial institutions.

He added that he could not rule out the possibility that bitcoin would become widely used and an acceptable form of exchange, but until then, it would be like a commodity, like collectibles such as Beanie Babies, marbles or Pokemon trading cards.

The defendant, 31-year-old Rochester man Richard Pitcik, is accused of selling $13,000 in Bitcoin to an undercover federal agent as part of a money laundering and drug distribution scheme.

Lawyers seek trial

Charles Siragusa's expected attitude may affect the verdict of the Buffalo Bitcoin money laundering case. Image source: Golden Finance

Defense attorneys in a Buffalo bitcoin money laundering case are withdrawing their lawsuit, dismissing the charges in part because U.S. District Judge Charles Siragusa indicated he might deny Scott’s request.

Rochester attorneys now plan to expedite the case, in part because Charles Siragusa's expected attitude could affect the verdict, so they hope to resolve the issue quickly.