What is Virgin Bitcoin?

While the global crypto community is facing some increasingly tense legal hurdles, the term Virgin Bitcoin is starting to become more popular. However, it is extremely important to be clear about what the term really means and how important it is.

What is Virgin Bitcoin?

According to CodesTrace CEO Dave Jevans, Virgin Bitcoin has essentially no transaction records (TX) associated with them. As a result, the coins lack a definite allocation history, making them extremely useful for money laundering crimes as well as other illegal acts that are looking to conceal their sources of illegal purchases. Not only that, even the receiver doesn’t have the traditional means of verifying the origin of the transferred funds since Virgin Bitcoin is not affiliated with any other wallet or cold storage institution.

Additionally, the Bitcoin blockchain acts as a decentralized ledger that allows people to keep track of the transaction history of a particular coin with the touch of a button. For example, each Bitcoin has a cryptographically proven history, containing a detailed record of ownership and transaction data associated with the coin. Simply put, if Bitcoin is used to handle illegal activity even only once, all subsequent transactions will be ‘streaked’. According to Jevans, Virgin Bitcoin is one of the main reasons why some cyber-savvy money laundering criminals exist in such a long time.

Virgin Bitcoin at the G-20 agenda

At the recently concluded G-20 summit in Osaka, Japan, the Executive Committee agreed to apply Financial Task Force (FATF) standards related to fiat money and digital assets. . In this regard, Babel Finance CEO Flex Yang said:

“When this set of standards comes into effect, exchanges will require transparency about cryptocurrency senders and receivers. This opens up the opportunity for broad monitoring for regulators to probe various ledgers to determine which wallets engage in illegal cryptocurrency trading, hacking, etc. Bitcoin is still of interest to institutional investors, but their threshold of risk is much lower. “It is not clear how the crypto world will comply with FATF standards, so many traditional investors feel it is best to be cautious.”

Yang then emphasized the importance of Virgin Bitcoin and ‘contaminated’ cryptocurrencies that can become extremely difficult to use when dealing with regulated financial institutions. For example, he pointed out that if there is evidence proving that a Bitcoin has been used for shady operations in the past then that token is most likely confiscated or detained by regulators for a variety of legal reasons. physical. It’s like a drug cartel or criminal business trying to put money in the bank and the banks refuse to process the transaction.

Why is Virgin Bitcoin so popular?

While the unified rule also applies to other altcoins, it appears that all institutional investors are mostly sourcing Virgin BTC. Simply put, almost any currency whether it be digital or fiat can be used for illegal transactions. However, because Bitcoin offers owners more transparency when compared to cash, it can be ‘bleached’ much easier.

Also, it seems that the Chinese government is particularly interested in Virgin Bitcoin, even though it does not have any incentives for individuals who own the digital asset. According to Mr. Yang, China has yet to take any drastic action against the burgeoning mining community. Currently, the demand for Virgin Bitcoin appears to be growing rapidly globally and mining operations in China are continuing to grow, growing every day. Yang then went on to say:

“The buyers are from the US and other regions. Chinese miners are mere salesmen. Buyers pursued this coin because of its novelty and unclear regulations. In fact, Virgin Bitcoin may not benefit family or personal funds that make purchases. However, there is clearly more confidence in the Virgin coin and it continues to earn high premiums.”

What consequences does the shady use of Bitcoin have?

Jevans notes that BTC has a dark history of trading because illegal activities like global money laundering or terrorism are often not bought. Even after a particular token has been exchanged multiple times, the payment trail can still be easily traced by investigators and put the holder at risk. The CodesTrace CEO explained the topic as follows:

Dark Tx’s history also hampered BTC’s flexibility if these tokens were of lower value. This is a major concern for hedge funds concerned that their entire fund could be damaged by a few bad tokens. While this is less likely to affect small holders, larger traders can and inadvertently hold large amounts of stolen assets, devaluing the pool. invest”.

Basically, even a shady transaction can make a coin or token ‘tainted’. Interestingly, though, Bitcoin criminals can be wiped out by local authorities by selling those items after making clear notes about past transaction history. The best example is when the US Marshals Service held a private auction in 2018 for a total of 3,813 Bitcoins (estimated to be worth $ 51.5 million at the time).

Notable Virgin Bitcoin data

According to crypto intelligence group CryptTrace, more than 75% of all transactions that take place in the black market are facilitated using Bitcoin.
A large number of cybercriminals use techniques like coin mixing to cut the path of a particular digital currency. And while it is still possible to view the transaction history of a particular token using advanced encryption methods, the trick of mixing coins makes the process incredibly complicated.

Russian conspirators involved in the alleged 2016 election hack in the United States are believed to have made money from a variety of different Bitcoin mining operations globally.

In a similar fashion, Jevans said Virgin Bitcoin was also used to fund subscription payments for dcleaks.com.

CipherTrace studies have revealed the recent crackdown carried out by the Iranian government over the anticipated mining sector. Not only that, there are strong indicators that local authorities are currently using confiscated mining equipment for personal gain.

Finally, Jevans also commented on the premium associated with Virgin Bitcoin and the difference with the premium associated with regular BTC. On this topic, he said:

“When we investigated BestMixer in November 2018, they charged a 5% fee for the Gamma level, allegedly Virgin coin. CipherTrace research reveals that these tokens are not actually used, instead they are ‘bleached’ through transactions. This has certainly raised the level and value of newly mined coins. Furthermore, the tightened regulatory corridor is increasing the value of ‘clean’ money because money laundering becomes more difficult through exchanges ”.

Also, according to Yang, the premiums associated with Virgin Bitcoin are currently at 10%. However, players operating in this domain for many years now have to spend more than 30%.

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