If I send sats from binance to a lightning wallet and then from the lightning wallet to an on-chain wallet do they become KYC-free?
#asknostr #plebchain
Discussion
No. Because binance still has to report to the irs depending in what country you live.. kyc simple means ima tell the government how much btc you have purchased. It does not inscribe you name to the coins you are moving
I think kyc means more than that. It also means that if Binance knows the address of my on-chain wallet if I withdraw on-chain. Not sure how this will work with binance->lightning address->wallet address
Your name is not tied to the utxo of the coins you move.. the only way is to buy non kyc.. they don't care where you send. all they wanna do is your information so they can tell the authorities that you purchased btc..
If you buy kyc and coinjoin and do all that. Binance still reports to the authorities you have btc that's all kyc means
nostr:npub1nqx3lfjxpkqhck3kgrdtkhncvffe94l7qrep6ftw49nphnmw9szqvh3quf Are you able to complete buys with @Robosats? I watched a tutorial and I still couldn't get it 😔
Ya first few times it didn't go through because it was in the middle of the night and I'm sure the seller was asleep.. I have better luck during days. The whole locking up sats was confusing for me at first
doesn't have orders for the currency I want to use..not sure if I am not using it correctly
You can begin to obscure the source/chain of transactions as you use things like Lightning or coinjoin (although I believe chainalysis watches Lightning now too).
The main issue with KYC is not the link between specific coins and your identity (unless those coins implicate you in some way).
It’s more that your “purchased Bitcoin” amount is on record and can be leaked/hacked. It also creates the assumption that you still own those coins (ie control the addresses where they end up).
If the IRS asks you to prove ownership or else pay capital gains tax, you don’t want to run afoul of those laws.
And if KYC’d coins are otherwise used illicitly, it’s easy for law enforcement to solve those cases
For further reading 😉
nostr:note1l2q52tgkvrny4ndzkehfv9fkls2vrnmkv5ds6qgdmz8zz6qx72tqxp28ml
I get that buying non-kyc p2p is the best. However...
1. I've tried robosats. It did not have orders for the currency/country I want to buy in/from. Binance remains the only way to stack. (I haven't tried bisq, peach etc yet but they might have the same problem).
2. Many people (including me) have no idea about the pitfalls of kyc when they start stacking. kyc exchange to cold wallet address is very easy for a government agency to track but if something breaks that link it creates a layer of obscurity. Taxable events happen only while spending and if years down the line one decides to spend the stack on something, my understanding is that it will not be straightforward for the tax authorities to detect it if the link between on-chain address and identity is obscured.
I would be interested to know what is the best way to deal with a kyc-stack
You are going to be taxed when you SELL your coins.
Bitcoin is taxed like stock.
If you bought it for X and sold for Y some time later, the positive difference between Y and X (capital gain) will be taxed.
If you purchased bitcoin via the KYC exchange, it will be locked to you even if you have withdrawn it to another wallet.
Not if I sell it for cash, directly purchase something from it
Good point. If you sell it for cash and will not report this sale in your tax form, the taxman will assume that the bitcoin amount owned by you hasn’t changed.
Will it be an issue in the future ? Maybe yes, maybe no. You estimate your own risks.