Almost any form of currency can be used for money laundering. However, some forms are more efficient than others, some are quicker than others, and some are less transparent than others. So, while bitcoin can be used to launder money....it is not the most efficient, nor the least transparent means to accomplish that task. Cash for art....art to auction....is the biggest method of laundering money today
I don't quite understand how this method would work in practice
Do you mean to say that you try to sell something at an auction which purportedly has some historical value and then buy it yourself for a lot of cash through a straw man? Do you really know that this works in practice? As I see it, the auction houses should confirm that the item you are going to auction really has any such value (e.g. the Roman sword you are selling wasn't actually forged a few years ago and then artificially tarnished). So your method may not be quite feasible in real life
I've never considered laundering money in any form; however, this is how it "could" work: use cash to buy valuable artwork, sell valuable artwork at auction. When the artwork (or other collectible) is submitted to auction, there is no reference to, nor record of, the price paid for the article because cash was used in its purchase but there is record of its selling price which can be reported. Same with coins: purchase rare mint coin with cash, sell rare mint coin at auction....On the books, the coin was found in pocket change at face value, but sold at auction for rare mint collection value.
http://www.nytimes.com/2013/05/13/arts/design/art-proves-attractive-refuge-for-money-launderers.html
