I am Japanese and I live in Japan. The number of people who gained over 100 million yen (about 0.9 million US$) in BTC last year was announced to about 330 people.
It is said that it is only by personal tax return. In the end, I think the government (at least Jpn) can only grasp the extent of information replaced by cash via exchanges.
Topic: How can a goverment trace you have BTC? - page 32. (Read 4077 times)
If BTC is bann in your country, does it mean illegal?
I'm from a country where the government does mind what cryptocurrency or bitcoin is, probably not for now. But if they bann BTC and consider it illegal, I'm gonna be doomed. Because I have registered to a 3rd party to cash out bitcoins. This company asked my IDs so I can cash out from banks. That's how they can track me now. I bought a car but not registered to my name, wanting to buy a house but its just not that ideal for the situation.
How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?
The process of tracking bitcoins would require a lot of resources to establish a money trail....First off if a bitcoin address is used several times its almost certain that anybody can track you that's why tumblers and a new bitcoin address should be used to avoid such from happening.
And as far as I know no government is willing to dedicate so much resources towards this cause.
No they can't trace an individual having a bitcoin or holding of any crypto. But the government can impose some fee on the transaction like additional fee when you go to an exchange. It is really possible like here in the Philippines that the exchange like coins.ph have been regulated by the government agency and the Bangko Sentral ng Pilipinas that gives coins.ph a license to operate. In this way coins.ph could be directed to get an additional fee for the government fundings in every exchange or transactions to be done.It is not possible for the your government to detect if you have Bitcoin. This is because the transactions on the Blockchain cannot be intercepted by any other person or unit. However the only way is for the government to spy on its citizens for the websites or web portals that they normally visit.
How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?
Easy, the government can trace your address maybe in your exchange address.
usually the exchange may required KYC so you can trading on that exchange.
You can be trace if you sell to an unknown person, you may not know if the person is a government official that is trying to spot out bitcoin owners. If bitcoin is ban in your country it will be very difficult to exchange your bitcoin to fiat because no bank will pay.
the government is very easy to find it at the time of transaction or exchange of money, what else is now more sophisticated era every year, then the government more find .
How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?
The only chance that the government can tract your Bitcoin ownership and transactions are thru your local exchanges in which we are required to submit legal documents and government ID's but outside local exchanges it will be impossible for our government to identify the Bitcoin ownership because Bitcoin is decentralize and anonymous in which tracking Bitcoin owners is very impossible.
for tracking without anything i think it impossible because we can see that bitcoin is the one that has the anonymously transaction its mean that no owner record and no receiver record of the transaction, the only ways is from the market and KYC from that market or exchanger of your country
No, not possible since its transactions are anonymous. Expect you exchange for flat money, paid into the bank and the narration is bitcoin payment 
.
Your exposed to the bank
.Your exposed to the bank
How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?
Bitcoin transactions are anonymous. As long as you don't reveal your identity, no one know you are a bitcoin holder.
For this purpose you have to buy bitcoin peer to peer from a person you trust. Never use exchanges that force you to verify your identity.
sir very well explained but i just want to know
1)through wallet address can government identity the person
2) if someone trying to exchange his crypto currencies into fiat , is government can know about this?
Government can know about it if they receive the data from exchange or payment processor. If you're buying the bitcoin with bank transfer for example, it's easy to trace the transaction from your bank account
It's a bit hard for the government to do tracking for two things. First, bitcoin is pseudonymous. The government does not know who the owner of the Bitcoin address is unless you tell it. Secondly, Bitcoin uses Blockchain database that is not controlled by any party.
Government can't do that to trace all btc. We our our privacy to live life with peace and security. Once the government do that it means there are problem inside the government system that we don't know. There is also a chance that they will have some interest to steal your bitcoin. Let bitcoin be always in decentralized and will not be in centralized system.
It is only possible if you do not even know how to take care of your privacity and you do not know how to protect your wallet, otherwise, it is impossible after all
I think they can track you if you will withdraw your btc into a real money. Because it is big question mark that wwhen did you get that money or what is the source of money
The government simply track our bitcoin wallet and if we register our account when entering or verifying with our original address and photo because bitcoin with Blockchain technology has a decentralized system.The whole concept of bitcoin is focusing on decentrilization meaning there is a middle men to record our identity in our transactions.Bitcoin provides anonymity of each users.Cracking it down is possible.
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They cant. Bitcoin is decentralize and there is no possible way to track down your transaction/info unless they were able to log in into your wallet. And that would be easy for the government, but if they do hack you, it's a breach of privacy.
Yes i believe also that bitcoin holders are not traceable since it is created as decentralised cryptocurrency and not being controlled by anyone else but only ourselves or the person than we trusted most to know our wallets important information. Breaching in someone’s privacy even if the government will do is prohibited also and if that happens, i think we can counter file the case for invading our privacy.
I think they could (if they really want) track your IP and match it to your wallet address.
I heard from someone they are already doing it but i am not sure if that is really tue.
I heard from someone they are already doing it but i am not sure if that is really tue.
As long as you don't reveal your identity, you're safe. That is, as soon as you try to enter funds into your wallets or cards you can be easily tracked so you need a service that will leave your identity anonymous, but in any case you can track the chain of transfers and transactions that will still lead to your wallets and location.
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