Why do people follow the rules? I mean, there’s no such thing as dirty letters or numbers. Eventually, all crypto will become dirty or gray, right? What if we have state laundries to clean up crypto? Sounds like a huge business to control public perception and the crypto itself.
People follow the rules because they don’t wanna deal with the cops knocking on their doors. Sure, there aren’t technically "dirty coins" but the bureaucrats are trying to track every illegal transaction. Not sure I agree that all crypto will go gray. Most users just wanna trade, not commit crimes.
That’s not really what I was getting at. Regulators always want total control over assets, yet they need to act within the law. If crypto is linked to crime, it can be legally seized, but that doesn't mean every taxi driver or pizza shop should be held accountable for the bandit's choices.
So if you run a platform that holds others' funds, you’re pretty much on the hook for any illegal activities, like money laundering or tax evasion. Exchanges wanna know how to track you down if something goes south, so they can shift the blame. If you buy directly and store your coins in your wallet, you might avoid that.
There’s a problem, though. Official exchanges often don’t have legally recognized wallets. The average trader can’t prove their transactions, only has flimsy evidence like screenshots. If the exchange is in another jurisdiction, good luck proving anything.
What’s the alternative then? The majority of exchanges are centralized. They can easily block gray or dirty coins and report to authorities. That’s the beauty of blockchain, right? You can trace payments through the public ledger.
I made this topic so the average person sees that even if they play by the rules, pay taxes, and follow laws, they could still lose everything legally at any moment. The average Joe can’t take on the state to protect their savings.
I hear you! I’m just an average Joe who pays taxes and loves it. If that makes me average, then fine. At least I’m on the right side of the law. But I also see people using DEXs, mixers, and coinjoins to hide their tracks. Some folks just want to play by the rules.
What law are you talking about? The one that applies to everyone, even the state? Or is it just for the average Joe? You mentioned the state controls illegal money movements. KYC and AML seem like total control mechanisms aimed at regular folks.
These days, settlement agreements and ownership are relative. In any country, sanctions can block anyone’s property. If you’re dealing with crypto, avoiding AML and KYC might be smart.
KYC or not, it’s a choice. There’s no such thing as clean crypto. Satoshi created Bitcoin as a tool against fiat. Government control comes from wanting to stop terrorism and drug funding.
I get what you’re saying governments want control. But KYC and AML aren’t just about crime fighting. They want to monitor all transactions, legal or illegal. They can’t admit they want to track everything, so they hide behind crime prevention.
It’s a cultural thing. People still cling to the banking system and don’t see the value of blockchain. Many feel safer with a third party managing their funds, which is why KYC and AML have become the norm.
Let’s mark exchanges that require AML or KYC as potential scams! The anti-money laundering narrative is just a cover for total control. Real scams? Look at the 2008 financial crisis.
Sure, but that would wipe out most centralized exchanges. KYC isn’t just for crypto. It’s a requirement to use fiat. The fact that exchanges overdo it is just sad.
I suggested categorizing exchanges based on whether they require AML or KYC. There’s a difference between crypto-to-crypto and fiat-to-crypto exchanges.
Not everyone who calls altcoins dirty is talking finances. A lot of the criticism comes from poor coding or attempts to tweak Bitcoin without real innovation.
I think it’s not the users who follow KYC that are dirty-minded. It’s those who view these procedures as bad. We’ve moved past the ‘70s. Crypto is a global currency now, not bound by the same rules as fiat.