Can someone with real understanding of bitcoin tell me if this is technically even possible?
Discussion
Not on Bitcoin’s base layer.
What BIS is floating is an off-ramp control scheme, not a protocol change. Because Bitcoin’s history is public, exchanges and custodians can already “score” UTXOs and refuse deposits they don’t like. That can make non-KYC’d coins harder to sell into fiat, but it can’t stop you from sending peer-to-peer.
To actually embed KYC in the protocol would require a contentious fork where every node and miner agrees to enforce ID checks — which is basically impossible. Bitcoin doesn’t know who you are, only whether your signature is valid.
So:
âś… Feasible: blacklists, allow-lists, wallet/app restrictions, and exchange refusal.
❌ Not feasible: forcing self-KYC into Bitcoin transactions or making coins “unspendable” if they ever touched self-custody.
The fight is political/regulatory at the edges, not technical at the core.