Replying to Avatar techfeudalist

Here’s what I think is coming:

1) force all US wallets to be registered under FBAR. Don’t worry, they’ll make it easy to do. Just hand over your tax ID and xpub.

2) release an API to check if a wallet address is registered

3) force exchanges to block all withdrawals to unregistered wallets; force software wallets to block all transfers from registered wallets to unregistered wallets; force businesses to block receipt of payments from unregistered wallets.

3) create a penalty, seizure and / or jail, for having control an unregistered wallet. If your unregistered bitcoin is transferred to a regulated entity, poof it’s gone.

Of course this won’t stop bitcoin. It’s just going to make life for Americans hell unless a few States stand up and push back. Also, countries will compete for bitcoiners so there will be places to go.
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xmrk ₿ ⚡️ 2y ago

Spain is heading slowly towards the step 1. They have their FBAR, and this or next year they extend it to bitcoin and cryptocurrencies held on foreign exchanges. (https://cincodias.elpais.com/cincodias/2022/12/30/economia/1672404046_312886.html) The idea is that local (Spanish) exchanges do KYC and report directly about their customers, and Spanish tax residents report about their bitcoin held by foreign custodians. Strangely, they exempt self-custody. Probably because they have no idea how things work: they originally proposed reporting public keys of your bitcoins held by foreign custodian. (https://cincodias.elpais.com/cincodias/2022/06/29/economia/1656506084_005184.html).

But I wouldn't count on this lack of knowledge, it is easily solvable, they have the motivation.

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