[TheCoelacanth]

That would only be if you used the tumbler for the purpose of avoiding financial reporting requirements.

Simply using a tumbler is not illegal.

For instance, if someone used legally obtained money to buy bitcoin, put them through a tumbler, then used the bitcoin to buy drugs. That would not be money laundering because it does not hide the proceeds of a crime or avoid any financial reporting requirements.

On the other hand, if the drug dealer took the bitcoin that they were paid with and put it through a tumbler, that would be money laundering because they would be hiding the origin of the proceeds from selling drugs.

[jnbiche]

> Simply using a tumbler is not illegal.

Right, but operating a tumbler without FINCEN registration and a MSB license is illegal. Even if the money put through it is entirely legal.