The alleged inventor of Bitcoin, who brought the cryptocurrency trend to the mainstream, was revealed last week. Or maybe not.

When Newsweek published its 4,500 word exposé that allegedly doxed Satoshi Nakamoto, there were immediate controversy and questions about both sides of the story. Since the story published, Nakamoto has been chased through the streets of Los Angeles by reporters, eaten a sushi lunch and denied any and all involvement with Bitcoin.

The story in and of itself is a riveting tale. But the financial implications of this make it vital reading for anyone who has invested in or is considering investing in cryptocurrencies. We’ve discussed the impacts cryptocurrencies have had on anti-money laundering regulations, but when the alleged inventor of the technology has the ability to disappear with millions of dollars worth of real money, the questions surrounding this become even more complex.

The continued push to legitimize financial startups and innovations such as cryptocurrencies and payment processors such as Square are not helped when the person who could be a powerful voice chooses to remain anonymous and shrouded in mystery.

In the past, financial regulators and banks that have centuries of managing wealth and processing financial transactions have adapted to new technologies. We have evolved from running gold across the American West on horseback to being able to fund a college education from a smart phone. But the quickened pace of offering new solutions to existing problems has been a challenge.

Some are proposing a safe harbor for financial startups. This would alleviate the steep fees and lengthy regulatory processes companies must endure to secure licensure to offer financial services. It would not eliminate protections, but it would help to foster innovation.

Now, of course there are risks to this innovation. Those risks likely led the Bitcoin inventor(s?) to remain anonymous. But Alacer and other anti-money laundering solution providers are here to protect consumers and financial institutions from those risks. The more we all innovate, the safe and more efficient we can be.

We’ll be at the ACAMS conference this month. Talk to us about your ideas of how we can innovate together.

By Richard Paxton

Want to learn more? Alacer’s AML experts will be attending the 19^th Annual AML & Financial Crimes Conference, being held March 16-19 at the Westin Diplomat in Hollywood, FL. Send an email to me at Richard@alacergroup.com to arrange a chat.