Not sure I understand the flow right.
Can you elaborate?
Discussion
You go to your exchange, you deposit fiat, then you buy BTC. They credit that BTC to your account.
You press a button to convert your balance to ecash (or automatically). You then initiate a withdrawal to your Bitcoin address using your ecash balance. The exchange sees where money is going, but they don't know it was you. The result is that they can't track where your Bitcoin goes (if the anon set is large enough).
Sounds like a no-brainer to me. No additional risk for the user. I would use this 100%.
Interesting idea.
Anyone know if the exchanges need end-to-end to adhere to KYC/AML?
This would be a great service for them to offer but they will always play safe legally.
But if they can’t do it, as an abstraction layer between the exchange and cold storage it would still be very useful!
Idk if exchanges are allowed to be blinded from their users.
An interesting alternative, start a liquid swap to bitcoin and withdraw to the liquid address from current exchanges that support
For exchanges that don't support liquid as yet, withdraw to a peg-in btc address and then swap/peg-out to a your btc address
... still custodial hop, and still needs an anonymity set (on Liquid), but exchanges get to maintain regulatory compliance
Also an interesting idea 🤔
We need some people at the exchanges to comment on the legal side of what they can and can’t do.
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