[chewit]

How about whenever you try to take money out? How can you get money out without it coming to an account that is associated with you? Can't the coins be tracked from the illicit purchase to this point?

I'm not clear on the process at all!

[hilko]

A site such as bitcoin-24.com allows you to create an account with no personal identification. It also allows you to send cash money (converted from bitcoin, usually) to an address.

And if you want to avoid the address issue, you can (currently) use one of the many 'exchanges' at localbitcoins.com and pick it up personally. Hell, if that's too dangerous you can probably get a minion to do it for you.

If the government ever cracks down on this kind of stuff, for example by making it harder to be a local trader at localbitcoins.com, then I have no doubt that a small industry of 'illegal traders' will appear, or methods of laundering the money.