1

How are the Localbitcoins.com founders safe from money laundering laws?

LocalBitcoins says its purpose is to connect buyers and sellers. That legalese makes it escape criminal laws.

What about Silk Road? Ross Ulbricht doesn't sell drugs. Someone using his service does.

4

It comes down to intent

... and possibly responses to illegal activity.

Localbitcoins intention is to facilitate trade in bitcoins - in itself a legal undertaking. Cryptocurrancy transactions can be used for illegal purposes but it is not the sites intention to enable that.

Amazon.com intention is to facilitate trade in books - in itself a legal undertaking. Some books contain material that is prohibited under some countries laws but it is not the sites intention to enable trade in illegal books.

Ebay.com intention is to facilitate trade in "stuff" - some "stuff" is illegal but it is not the sites intention to enable trade in illegal stuff.

Silk Road intention was to facilitate trade in illegal goods and services - therefore they are accessories to the crimes committed.

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  • How do you proof intent? You can also sells candies and other legal stuff in silk road. Is this up to the judges? – Sharen Eayrs Nov 9 '18 at 12:34
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    Just as an example, if you directly advertise your service on a illegal drugs forum as "best place to sell your illegal drugs" you'll have a hard time convincing a jury that your site isn't designed for facilitating illegal transactions. – pboss3010 Nov 9 '18 at 13:31
  • @SharenEayrs the same way you prove everything else, with evidence – Dale M Nov 9 '18 at 20:20
  • This answer offers no legal citations or reasoning. Could you improve it? – Putvi Oct 24 '19 at 18:34
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Silk Road was illegal because it knowingly hosted pirated software. The site you mention just allows you to sell things.

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  • No, that was not the problem. – gnasher729 Oct 25 '19 at 20:24
  • @gnasher729 if you say so. – Putvi Oct 25 '19 at 22:23

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