Check out this article on Bitcoin Magazine: https://bitcoinmagazine.com/culture/kyc-bitcoin-and-the-failed-hopes-of-aml-policies-preserving-individual-freedom?utm_source=carrot&utm_medium=partner&utm_campaign=carrot_share
nostr:npub1pmhevxtlt3478pvmdqt7dftnv6zc2mzpdc569yjm6ks4k2jhezcs53uksr can you explain how all BTC isn’t KYC free with a little work?
Hear me out. I buy BTC on an exchange that I’m KYC’ed on. Gov definitely knows that’s my BTC.
I then move it off to a wallet. Gov can assume that was my wallet. Fine.
I then make another wallet and move it there. At that point how would / could the gov prove those sats are still from my original KYC purchase?
Wouldn’t that be enough to create doubt to clear the BTC and make it anonymous?
Bonus question: if I now bring those same sats back to an exchange and sell them (which I would never do but if I did) how would they know what my original purchase price was for taxing purposes? These sats have moved to multiple wallets and potentially multiple exchanges.
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