In that case is sounds like it doesn't matter so much if they know you have it, but rather of they know you spend it.

I guess spending KYC bitcoin has them one step closer to knowing in the first place.

Thanks

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Well, I wouldnt say it doesn't matter.

The governmet stuff is just one side of it. KYC is also risky because that info will eventually get leaked or hacked. Happens all the time if you pay any attention to these things. Now criminals will know your personal info and potentially your address (or indirect info to figure these things out) and how much Bitcoin you bought.

https://github.com/jlopp/physical-bitcoin-attacks/blob/master/README.md

Thanks for this