The only change that happened with Bitcoin is the fact that most exchanges and services that are dealing with bitcoin or cryptocurrencies are now centralized platforms due to regulations, and for users to purchase or make deposits into these platforms, we are required to pass a KYC process for AML. However, the nature of Bitcoin is still the same and can’t be changed at all.
The blockchain in Bitcoin is decentralized which mean nobody can take control over it, and many users still deal only with way that keep their identity hidden and away from transactions inside centralized platforms without an illegal reason as money laundering, peer to peer marketplaces are still alive today because so many users dealing with them.
Topic: How did AML kill the decentralized nature of Bitcoin? (Read 85 times)
Can we still enjoy the decentralized nature of bitcoin?
Of course you can, as long as you are avoiding centralized platforms.Having said that, people generally don't care about all these bitcoin characteristics that makes it so unique so they don't don't mind stricter regulation that are making our life harder as it makes them feel safer.
Can we still enjoy the decentralized nature of bitcoin?
Bitcoin network is decentralized, if you ask about it now, and you can have privacy with Bitcoin if you do as follows- Use a non custodial, open source wallet.
- Run a Bitcoin full node.
- Use Tor.
- Use change addresses.
In future, I don't know what will happen with Bitcoin decentralization but one thing to know, cost to do 51% attack is expensive and chance of success and get profit from an attack is low.
The old days are gone; in the past, we could easily sign up on exchanges like Poloniex and Bittrex with just an email address. But now, they're much stricter with their verification. Exchanges wouldn't be this strict without government intervention, as they aim to satisfy their clients, you know, the more traders they have, the higher their profits.
Take Binance, for example. It’s one of the biggest exchanges, but due to a lack of regulations or internal controls, they got tagged for money laundering, leading to CZ’s removal as CEO and got imprisoned for violating the law. So, let’s leave the past behind and focus on the present. There are still ways to stay anonymous, but they're quite limited. As mentioned, P2P transactions are possible (except Binance p2p), but they're high-risk. Most of us now have probably come to accept these strict regulations, but what's key is that the government still can’t control Bitcoin’s network- or even its price.
Take Binance, for example. It’s one of the biggest exchanges, but due to a lack of regulations or internal controls, they got tagged for money laundering, leading to CZ’s removal as CEO and got imprisoned for violating the law. So, let’s leave the past behind and focus on the present. There are still ways to stay anonymous, but they're quite limited. As mentioned, P2P transactions are possible (except Binance p2p), but they're high-risk. Most of us now have probably come to accept these strict regulations, but what's key is that the government still can’t control Bitcoin’s network- or even its price.
Can we still enjoy the decentralized nature of bitcoin?
That's true. Governments have started asking crypto platforms to do KYC for their users due to AML regulations.
While AML regulations are good but at the same time it is taking away our privacy.
But bitcoin hasn't changed a bit and this allows us to stay off the grid forever if we take the precautions.
We can still enjoy decentralization but it depends on how good we are with privacy.
As we all know, Bitcoin is decentralized, and in its early days, we were proud of that fact--believing no government could control it and even thinking it might replace fiat. Those were the days when we were highly optimistic about Bitcoin’s future.
Bitcoin was decentralized the early days and it still is. If it wasn't decentralized, we would be seeing so much issue arising. We would be seeing people controlling which transaction to include and which not to. You can still open your own wallet and make transactions without any third parties being involved. As long as you aren't dealing with fiat currencies or centralized exchange/institutions, you don't have to be worry about the government. There is no government yet that controls bitcoin. And we shouldn't believe that bitcoin will replace fiat currency. It was never meant to.However, with the current AML (Anti-Money Laundering) policies in place, it seems like Bitcoin’s decentralization is being challenged by regulations, especially with the introduction of KYC (Know Your Customer) requirements.
Can we still enjoy the decentralized nature of bitcoin?
Not sure what AML and KYC laws has to do with bitcoins decentralization. Those doesn't affect the decentralization in anyway. The worst that happens is the government knows who the bitcoin belongs to and who is making what transactions.Can we still enjoy the decentralized nature of bitcoin?
Op AML or Anti Money Laundry policies or government regulations on cryptocurrency has nothing to do with the Bitcoin itself and it network. AML is mainly targeting the Centralized Exchanges and not the Bitcoin network. And when talked about Bitcoin decentralization, we are talking about the Bitcoin network with it non or self custodial wallets and not custodial wallets or exchanges.
Even if government regulate all the wallets and exchanges in the world, Bitcoin itself is still decentralized and it just for developers to create a decentralized wallet to save and store the asset. The decentralization of Bitcoin is still stand.
Even if government regulate all the wallets and exchanges in the world, Bitcoin itself is still decentralized and it just for developers to create a decentralized wallet to save and store the asset. The decentralization of Bitcoin is still stand.
Of course everyone knows that Bitcoin is decentralized, but that’s not what I'm trying to raise here. When I mention Bitcoin, AML, and KYC, I’m talking about how regulations have evolved. Remember when Bitcoin was viewed as the gateway to massive adoption and freedom? Now, as adoption grows, we see the government stepping in, regulating heavily, and squeezing out that anonymity we once thought was core to Bitcoin. It's less about its technical aspects and more about how regulation changed the way we experience it.
@Charles-Tim (it's not about the technical thing)
Bitcoin is decentralized NOT the centralized services that are built to use bitcoin like an exchange! The government is also enforcing KYC on those centralized services as they have always done for as long as governments and their KYC policies existed (long before bitcoin).
It won't affect bitcoin.
Even if an authoritarian regime forces KYC on everyone who ever wants to use bitcoin, it still won't change anything about decentralized nature of bitcoin. It will only affect the people under that authoritarian rule.
It won't affect bitcoin.
Even if an authoritarian regime forces KYC on everyone who ever wants to use bitcoin, it still won't change anything about decentralized nature of bitcoin. It will only affect the people under that authoritarian rule.
Op AML or Anti Money Laundry policies or government regulations on cryptocurrency has nothing to do with the Bitcoin itself and it network. AML is mainly targeting the Centralized Exchanges and not the Bitcoin network. And when talked about Bitcoin decentralization, we are talking about the Bitcoin network with it non or self custodial wallets and not custodial wallets or exchanges.
Even if government regulate all the wallets and exchanges in the world, Bitcoin itself is still decentralized and it just for developers to create a decentralized wallet to save and store the asset. The decentralization of Bitcoin is still stand.
Even if government regulate all the wallets and exchanges in the world, Bitcoin itself is still decentralized and it just for developers to create a decentralized wallet to save and store the asset. The decentralization of Bitcoin is still stand.
Not directly, but these measures like KYC implemented to fight AML is one way of controlling the decentralized nature of bitcoin.
If you control the decentralized nature of something, that means that thing is no more decentralized. There should be nothing like direct or indirect about this. You do not necessarily need to make use of wallets and exchanges that are centralized.In the past, I would think of that, but now?? obviously not..
I have never thought like this before. You should know that bitcoin is very different from fiat. People will prefer to spend fiat and hold it in short term but they will prefer to hold bitcoin. But these centralized exchanges facilitate majority of bitcoin transactions, I'm talking about the big picture.
Tell me some popular decentralized exchanges and its total volume to see they're really relevant.
The purpose of bitcoin is P2P transactions. P2P can be done without centralized exchanges. I do not need to go the an exchange before sending bitcoin to a family member or a friend or someone. I see those exchanges to be used for spot, margin and derivative trading. Some have P2P but you can make bitcoin transaction without them. Bitcoin remain decentralized and nothing is changing that. For convenience, some people can go for centralized exchanges. Tell me some popular decentralized exchanges and its total volume to see they're really relevant.
Did you mean, you're supporting money laundering?
I don't see anything wrong if the authority caught money launders because they deserve for that.
But, if someone earn Bitcoin in right way i.e. not scam, not illegal etc and they use mixer or trade using no KYC exchange, it's not fall to "money laundering" because they only want to protect their privacy.
Privacy isn't a crime.
I don't see anything wrong if the authority caught money launders because they deserve for that.
But, if someone earn Bitcoin in right way i.e. not scam, not illegal etc and they use mixer or trade using no KYC exchange, it's not fall to "money laundering" because they only want to protect their privacy.
Privacy isn't a crime.
I remember the time where exchanges asked for minimal details; you literally could transfer funds without them knowing your personal details. The decentralization nature of bitcoin has been affected due to KYC policies, especially in Europe, and it's something that has made things harder but certainly not impossible. There are still options, such as P2P exchanges, Bitcoin ATMs (even though some ask for identification and/or have excessive fees), or meeting in person, but it's definitely more complicated than it used to be in the past, especially if you were used to an era where all this wasn't necessary.
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Can we still enjoy the decentralized nature of bitcoin?
Of course we can. Just because many people do not use it in a decentralised way does not mean that the rest of us cannot. Because of the nature of bitcoin, there will always be that option, even if more and more of it goes through centralised entities, although I would say that P2P use will be relegated to low or medium value transactions.
As we all know, Bitcoin is decentralized, and in its early days, we were proud of that fact--believing no government could control it and even thinking it might replace fiat. Those were the days when we were highly optimistic about Bitcoin’s future.
No government is still controlling bitcoin. Bitcoin is not a substitute for fiat but it is an alternative. You should not think that bitcoin will replace fiat.Yes no government control bitcoin as they can't able to do it, its just they are regulating those platform involve in the industry so that they can possibly track the transaction flow happened or to know which people is using Bitcoin.
But also people should really not think about Bitcoin will replace fiat since it might trigger the officials and think about bad for bitcoin since this situation will leave some negative statement that bitcoin is huge treat for their traditional financing system.
If people would just do easiest approach and always think about that bitcoin is good alternative for sure this thinking will never give any negative impression to government. They might create some action on how they could able to maximize the potential of bitcoin then would never think about doing some bad actions towards this asset.
As we all know, Bitcoin is decentralized, and in its early days, we were proud of that fact--believing no government could control it and even thinking it might replace fiat. Those were the days when we were highly optimistic about Bitcoin’s future.
No government is still controlling bitcoin. Bitcoin is not a substitute for fiat but it is an alternative. No KYC for noncustodial wallets and decentralized exchanges. There is nothing yet centralized to the point that government are controlling bitcoin
But these centralized exchanges facilitate majority of bitcoin transactions, I'm talking about the big picture. Tell me some popular decentralized exchanges and its total volume to see they're really relevant.
As we all know, Bitcoin is decentralized, and in its early days, we were proud of that fact--believing no government could control it and even thinking it might replace fiat. Those were the days when we were highly optimistic about Bitcoin’s future.
No government is still controlling bitcoin. Bitcoin is not a substitute for fiat but it is an alternative. You should not think that bitcoin will replace fiat.However, with the current AML (Anti-Money Laundering) policies in place, it seems like Bitcoin’s decentralization is being challenged by regulations, especially with the introduction of KYC (Know Your Customer) requirements.
No KYC for noncustodial wallets and decentralized exchanges. There is nothing yet centralized to the point that government are controlling bitcoin 
As we all know, Bitcoin is decentralized, and in its early days, we were proud of that fact--believing no government could control it and even thinking it might replace fiat. Those were the days when we were highly optimistic about Bitcoin’s future.
However, with the current AML (Anti-Money Laundering) policies in place, it seems like Bitcoin’s decentralization is being challenged by regulations, especially with the introduction of KYC (Know Your Customer) requirements.
Can we still enjoy the decentralized nature of bitcoin?
Of course we can. Decentralisation is becoming harder and harder as days go by just like you said. However we still have the bitcoin network as a decentralised network no matter what. Of course the government wants to be in control every single time, however the nature of bitcoin is fully based on decentralisation starting from mining down to even price.However, with the current AML (Anti-Money Laundering) policies in place, it seems like Bitcoin’s decentralization is being challenged by regulations, especially with the introduction of KYC (Know Your Customer) requirements.
Can we still enjoy the decentralized nature of bitcoin?
The best way we can assist is for more people to key into decentralisation especially because of it's importance and freedom. Another important thing is to vote in the right leaders. Most topics about Trump and this election is to endeavour people to vote someone who's in support of the bitcoin and decentralisation network and not someone against it.
As we all know, Bitcoin is decentralized, and in its early days, we were proud of that fact--believing no government could control it and even thinking it might replace fiat. Those were the days when we were highly optimistic about Bitcoin’s future.
However, with the current AML (Anti-Money Laundering) policies in place, it seems like Bitcoin’s decentralization is being challenged by regulations, especially with the introduction of KYC (Know Your Customer) requirements.
Here's a brief definition of AML and money laundering for context.
Can we still enjoy the decentralized nature of bitcoin?
However, with the current AML (Anti-Money Laundering) policies in place, it seems like Bitcoin’s decentralization is being challenged by regulations, especially with the introduction of KYC (Know Your Customer) requirements.
Here's a brief definition of AML and money laundering for context.
Quote
Money laundering is a type of financial crime. It involves taking criminally obtained proceeds (dirty money) and disguising their origins so they’ll appear to be from a legitimate source. Anti-money laundering (AML) refers to the activities financial institutions perform to achieve compliance with legal requirements to actively monitor for and report suspicious activities.
https://www.sas.com/en_ph/insights/fraud/anti-money-laundering.htmlCan we still enjoy the decentralized nature of bitcoin?
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