Are crypto-currencies not effective as a money-laundering
method? I had assumed that part of the great rise and fall
of BTC was dark money flowing in & out on its way to some
clean-looking equivalent, plus some speculation on the side.
1. At some point you want to get fiat back out, thus associating your identity to transactions. While there are some exchanges that are less stringent on verification requirements, the tie is pretty simple to see via the surveilled central banking system in most countries that tends to maintain the strict-ish verifications.
2. Exchange for goods. Unless this is off-chain, it’s again pairing a physical good back out somehow in an exchange of things.