If trading in Bitcoin amounted to money laundering exchanging Linden Dollars on Second Life would be too - No, I think this is a rather narrow interpretation of the law.A bitcoin mixer simply swaps your Bitcoins for someone else's. It is true that it makes it close to impossible to detect the passage of Bitcoins through a network from one person to another. It's also true to say that Bitcoin mixing services can be used (and are!) for money laundering services. This said, running an exchange of this nature is no more illegal than exchanging any other kind of virtual currency for another, for which a licence is not required. As I said before however the point is moot in any case as Bitcoins are designed to be used anonymously. KYC procedures would rather defeat the point of the exercise.In theory if you did earn an income from exchanging or trading in Bitcoins, this should be declared and taxed but in practice it would be extremely difficult to detect unless you were stupid enough to transfer large unexplained sums of money to your bank account.Hope this helps,V.Quote from: kmfkewm on April 13, 2012, 06:19 amUsing bitcoin mixes is money laundering. Using bitcoin to pay for drugs may be money laundering in itself. Bitcoin is somewhat of a legal gray area right now afaik, but they could probably try and say it is money laundering depending on how you go about using it. Actually being a bitcoin exchanger is almost certainly illegal in the USA unless you have licenses and follow some sort of know your customer regulations.