Topic: Privacy in Bitcoin Transactions is Under Attack(?) (Read 137 times)

read the regulations about how they define a money service business or mixer, then look for wats not said and create a feature/method/service that does not define itself nor advertise as a msb/mixer

Uber does not define or advertise itself as a taxicab service.. so avoids the taxi licence requirements

the answer exists.. but those crying about this are ones that want to keep THEIR mixer business being promoted. if they actually cared about privacy they would be thinking of not just one method. but many methods. they would realise promoting a mixer is a path to a dead end. so best to start afresh and create something not using the word "mixer"

..

the root of the issue is when bitcoin became deemed legally recognised currency by governments 2013+. meaning government money laws started to apply.. if bitcoin remained private property as it was 2009-2013 we would not be in the same legal jurisdiction of money controls as we are now

but because it is defined as currency we have to learn the currency laws and use them, this means finding the loopholes

mixers are not shut down just due to the developers taking commission from actual criminals in the X% of criminal activity vs x% of clean activity a mixer does.. but also just taking a commission for managing the movement of currency.. as that alone makes them an unregulated MSB even if all funds were clean
(and before idiots chime in. mixer devs are not stopped just because they are coders)

so learn the laws to learn what is not defined. and use the non-definitions to create new features, methods, services

Here comes the morality police, oh wait!


I assume that if the CIA would offer a 500$ per week sig campaign you would be the first to post an application, right?


The first thing is right the second is completely wrong.
Not even one percent of the newbies coming in for crypto care about that, they will send their id, a mugshot, their genealogical tree till the flood, blood samples, and even their wife to an exchange they have no clue about and do that with a smile!

If that were true you would see CEX dying and DEX like Bisq being the hot topic, but no, every topic about an exchange in the reputation sections starts with: I sent them all the documents they requested and they still won't let me have my coins!

After all the past lost wars it's not the mixers turn, lol, anyway I am not entirely against this because I am not a fan of mixer, but if they are one way forced to register their mixer services that doesn't make it privacy anymore and propel will have to find other ways, this will affect few new block chain projects building on privacy features like Tectum and Aleph Zero, but I don't give an embracing hand to people that are using Mixers to fund illegal things.

I know that some people are using Mixers to get rid of their foot path from the government trackers but since Bitcoin was created as transparency open source from day one I don't see needs to start using Mixers.

Monero is doing what its been created for and I am confused why they are not cracking down on monero anymore, years back they tried and I thought it's the end for monero but it won, someone have anything to say about this?

Thanks, Op for this topic, but I'm a bit confused according to the previous media reports the Mixers were unlikely to be used for Money Laundering but the stats were presenting a different story. When I was going through that story the author mentioned around 1% to 5% chances for the money laundering to be directly connected with the Mixers for the rest there were private Blockchain networks involved and the dominating factor was the fiat, In other words, their clear target is Bitcoin and emerging community.

Why Now? There's nothing hidden in the intentions, they want to expose themselves directly by attacking privacy, and their so-called crackdown is to protect their shit behind the scene.

They have targeted bitcoin itself but couldn't have a breakthrough, they also once aimed at miners using many diverse means to tell them that mining is an environmental disaster, now it's upto the bitcoin mixers, i hope they find a means of lurking around here very disgusting because they cannot attack bitcoin network completely, privacy is what we use to have ourselves covered in using bitcoin and but a shade for all manners of illegal financial activities, they should probably be done dealing with fiat before thinking about bitcoin.

It has always been under attack, to be honest, but now Bitcoin has been legimitimized by investors and technology enthusiasts and it is not longer a tool exclusively used by criminals to deal drugs and weapons, then it has become more popular and widespread among the regular person, to dismay of the centralized forced who want to control us all.
If people do not defend their right to privacy and governments do not put a stop to hypocrisy, then in a few years the sole use of Mixers and privacy-enhanced coins could mean prison time to anyone of us, regardless whether we were using those tools to protect our privacy while having a spotless tax history with the IRS or whatever taxing agency has authority over you.

We won't understand how precious is privacy until we end up losing it...

Correction: They have declared another war on Bitcoin, mixers are just a cheap excuse. Cracking down mixers would crack down the entire Bitcoin ecosystem, as every transaction which isn't fully KYCed is potentially concealing financial activity, hence is mixing funds.

It'll absolutely incentivize decentralized mixing, right as well as disincentivize usage of centralized exchanges which due to new regulations might deem your coins as funding terrorism. Insane policies right there.

Read the linked thread above.

Much of what that Twitter account has written is inaccurate. Have a read of my thread about this piece of legislation here: https://bitcointalksearch.org/topic/the-patriot-act-comes-to-cryptocurrency-5471353

"Mixers", as defined by this legislation, covers pretty much everything which isn't a fully KYCed centralized exchange. It covers mixers, P2P trading, DEXs, non-KYCed CEXs, casinos and sportsbooks, and more. Even simply "creating and using single-use wallets, addresses, or accounts" should now be classed as "mixing" according to FinCEN.

They are choosing neither security nor privacy. This does not make anything about bitcoin more secure. They are choosing mass surveillance.

It's also largely a fiat problem, with fiat money laundering being many orders of magnitude higher than bitcoin money laundering. But banks which launder trillions of dollars only get a slap on the wrist since they launder money for the politicians passing these draconian laws.

The only threat to the global financial system is bitcoin itself. This isn't about finding a compromise - this is about FinCEN trying to protect themselves and the government from the continual decline of USD.

This is the most accurate thing they have written. This isn't about privacy or security of preventing money laundering or stopping terrorism or any of the other bullshit that FinCEN will try to sell you - this is about mass surveillance, coercion, control, and the erosion of your freedom.

Yeah, the subject title is a statement, and also a question - The US Treasury's Financial Crimes Enforcement Network (FinCEN) have declared Bitcoin mixers as a hotbed for money laundering, and are preparing to start cracking down on them.

Here is the full declaration =  https://www.nobsbitcoin.com/fincen-wants-to-outlaw-certain-bitcoin-on-chain-transactions/

And here is the summarization someone posted on X (formally known as twitter).

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Breaking Point,

Is FinCEN’s New Proposal the Death for Privacy in Bitcoin Transactions? 🚨

We are on the "They fight you stage"
The U.S. Financial Crimes Enforcement Network (FinCEN) Drops a Bombshell,
FinCEN's declaration is not to be taken lightly.
They're rolling up their sleeves and cracking down on what they see as potential hotbeds for money laundering - Bitcoin Mixers.


FinCEN's Unmistakable Message:

1. The term 'btc mixing' is in the crosshairs, being labeled as a "primary money laundering concern."
2. The move aims to enforce stringent recordkeeping and reporting requirements on an array of transactions.
3. FinCEN is not pulling punches
4. CVC mixers are now effectively on a countdown clock, regardless of whether their purposes are legitimate or not.


 Privacy, A Dying Virtue?:

- This is a wake-up call for the digital community. 
- The privacy that makes blockchain technology so appealing may be at risk. 
- With this move, the U.S. government is drawing a line in the sand, effectively choosing security over privacy.


Potential Ripple Effects / Global and Pervasive:

- Money laundering is not merely a domestic issue. It's a global menace.
- FinCEN is making it clear that anyone operating as a CVC mixer within U.S. jurisdiction or even substantially so needs to register.
- Other countries to follow suit?


Counterarguments / A Double-Edged Sword:

- FinCEN acknowledges the potential for legitimate uses of btc mixing, such as personal privacy or avoiding repressive regimes.
- The threat to the U.S. and global financial systems appear to outweigh these considerations.
- A compromise needs to be found, and fast.


Implications for Financial Institutions Beyond Just Compliance:

- This isn't just a regulatory hurdle; it's a seismic shift.
- Financial firms may face a new wave of due diligence and compliance checks, even possible restrictions on account activities.
- It's not just about ticking boxes; it's about fortifying the financial infrastructure against illicit activities.


Transparent but Opaque the Paradox:

- The blockchain was designed for transparency, but this move may obfuscate that vision.
- It may drive users to seek even more secretive methods of transaction, exacerbating the problem it aims to solve.


Bottom Line,

FinCEN's proposed crackdown on #Bitcoin Mixers heralds a new era where the scales between privacy and security are tipping noticeably towards the latter.
The clock is ticking, the stakes are high, and the crypto community must prepare for what could be a watershed moment.

Could this situation prompt a deeper exploration into alternative, privacy-enhancing technologies, perhaps further fueling the Proof of Work (PoW) debate in Bitcoin as a countermeasure?
"This serves as a crucial reminder that the ultimate consequence of manipulated currency is coercion and control, leading to the erosion of individual rights and freedoms.
If this were not the case, one would expect regions with the most dysfunctional monetary systems to have the most effective laws "protecting" their citizens."
https://x.com/MDBitcoin/status/1715750160586645975?s=20

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And one question on my mind is, Money laundering is a crime that has been in existence way back before Bitcoin came in 2009, and the first Bitcoin mixer was launched in 2011, why now is FinCEN after bitcoin mixers?

Wouldn't it have made more sense if they went after the root cause of money laundering, rather than chase after mediums they believe people use to launder money? will bring down bitcoin mixers stop money launders from laundering money?