Topic: Should there be a way to register your wallet with the government? - page 4. (Read 550 times)

Crimes?
It gives people control over their funds it doesn't really free you since you're still bound in the same economic ecosystem, if we don't bring returns and profit in the equation if just half freedom, since well, everything is still working in fiat.


It's not a new idea and it has already being put in practice in SK, there you can withdraw from exchanges only to a wallet that is owned by another licensed service and you have to prove you have been KYCed for it, so a closed system.
So in your scenario rather than blacklisting you have whitelisting, only approved addresses are accepted, pretty doable but it will be terrible for bitcoin, it might gain legitimacy but it will also strat to lose its main purpose.



They can start that slowly
- exchanges ask you for your addresses D/W and you sign a message with them and they are stored along with your data
- payment processors do the same, again logging and whitelisting addresses
- then they come with restrictions, you can only pay from a white-label address and miners in those countries that enforce this are also forced to mine only transactions from these known addresses
- they might even set up a blockexplorer with those whitelisted addresses
Slowly but surely cracks in anonymity will start to appear since more and more of the addresses and links between them will be known, and people will become worried about sending money to an address that identifies as suspicious, and slowly from freedom you go full dystopian madness.

I'm not saying it will be done but if you elect in enough countries stupid leaders they could try to do it and while not completely able to monitor everything they will do a lot of damage.

We live in a world controlled by the government and anything that wants to become popular and widely adopted needs their permission. So I think there will be no way for bitcoin to become popular without their permission. I have also said many times before that if we want bitcoin to be popular and used worldwide, the price we have to pay will be managed and regulated by the government. But many people underestimate the power of government, and believe that bitcoin is decentralized and has unparalleled power. No one can ban or stop the popularity of bitcoin, but see how even small government bans make it difficult for us to use bitcoin. And just think, if the government issues a complete ban, how can we spread and popularize bitcoin to everyone. How many people would dare to go against the government and secretly use bitcoin if they actually banned it?

Registering wallet with the government is not a good idea, especially since there is usually a change of people in government when their tenure are over. Other reasons are:
1. The government will become a third party to your wallet, in which a corrupt official can give info to fraudsters and empty one's wallet.
2. The government may impose ridiculous tax on bitcoin traders.
3. There will be no privacy to your wallet since the government is involved.

As far as I understand the government can't control bitcoin because bitcoin is decentralized and can't share any secret information. Blockchain system helps more in crypto transactions. You can complete your transactions in less time without any central government intervention the popularity of blockchain is increasing day by day. Although its success started with cryptocurrency trading but its use is now being planned for many purposes some banks are testing its use.

The Blockchain network is built on privacy and financial freedom as the government does not have the power to intrude the privacy of any bitcoiner.Once bitcoin loses its privacy policy to any central controlling authority the manipulation and financial crime will increase in the Blockchain world.The privacy of every bitcoiner shouldn't be linked to any central controlling authority like government and banks, otherwise the person doesn't understand the state of being financial free from third parties.The security of Blockchain network lies on your hand as your seed phrase & password to your wallet should be known by you and not shared to anyone nor the government.

Bitcoin has been designed in such a way the helps us have our privacy through the use of the blockchain technology with the bitcoin network, but if anyone uses a centralized exchange, such a person has already submitted himself to the government because the can take action at any time on him under the request of the government as they may so wishes, since they have all the user information under KYC with them, its more better if we have chosen the right means which is in the use of a non-custodial wallet for our bitcoin, government will have no access to us.

A lot of interesting replies and opinions here.

Firstly, I don't value Bitcoin in fiat, but in its purchasing power. I may need to relate that to a fiat currency, but that is really just to acquire it through an exchange. Even when you do value it in fiat, then it is international, so it is not just one fiat currency that is being used. Interestingly, its purchasing ability may vary from country to country - hence the opportunities for arbitrage via local exchanges.
What I am suggesting is that people who are not trying to evade taxes, or indulge in activities that some may consider undesirable, may not have privacy as the primary attribute of Bitcoin. If you use an exchange with KYC, then you are a long way closer to my suggestion. One might even say that you have already embraced it.
Would it really make you less secure if the database was hacked? Would it really leave you vulnerable to a £50 wrench attack ( price adjusted for inflation )? At least it make make any perpetrators easier to discover.
Remember that Bitcoin is pseudonymous , so most of the info is easy to  discover anyway. If you really want to indulge in illegal activities, use the currencies of the elite. These are high value gold coins such as the English Britannia and the Sovereign ( the coin, not the woke prince). They are exempt from VAT, gains tax and inheritance tax in the UK, so you can work out how keen the government really is to stop fraud and money laundering.
I just feel that registering your wallet with the government doesn't really give anything away, and may lead to simplification of the use of Bitcoin. Of course you may elect to have an undeclared second wallet, and that would be your choice

Bitcoin doesn't free you from fiat (crimes) because we value Bitcoins in fiat. Money laundering is not an issue here, the issue is that government doesn't have much control over those who use it. Government wants to know who launders money and they don't want someone without their permission to launder money. Do you think that billions of dollars aren't laundered via banks that are regulated and controlled by the government?

Should there be a way to register your wallet with the government?
Hell no! Just imagine if the database gets leaked. Keep in mind that blockchain is a public note where all the transactions are written. If the database of who owns which wallet gets leaked, then it will be possible to know who sends what amount of coins to whom. This is probably the worst case scenario, even centralized banks will be more safer and anonymous than a leaked database of registered Bitcoin wallets.

I disagree.

It’s not money that is corrupt and toxic but rather it’s the people who use it. The government thinks that bitcoin or cryptocurrencies are just another way to exploit money so they are trying to get rid of it or… maybe they do not want the idea of bitcoin being more preferred than their precious fiats. They know that they have no control nor authority over bitcoin so they will do everything to get rid of it and the people who use it.

It seems to me at this point that some authorities would be content only to introduce absolute control over Bitcoin or any other cryptocurrency in such a way that every transaction must be identified in such a way that the sender and receiver are known. If control over users were to be established in this way, and if the authorities in "cooperation" with miners could censor transactions that are suspicious to them, then Bitcoin would no longer be what it is now.

In addition, if people were to be identified in this way and a database of people who own cryptocurrencies would be created, isn't it realistic to expect that sooner or later someone would hack such a database and put all those in such a database at risk?

I am never going to register my wallet with my government if this ever became a thing, though i know it will never be. Since you propose that it is going to be optional, what is going to happen to the people who do not, they will the ones under tight government surveillance and their coins will probably be confiscated if it hits a centralized exchange, for failing to register.

This will do nothing, but open up more options for the government to attack BTC's fungibility.

Should the government declare that they want its users to register their bitcoin public addresses just to monitor them is to me not only a privacy issue but also a security concern because every transaction tie to you can make you be a culprit to the government, they can arrest you and decide to request for the private to that address because they assume holds illicit funds.

Also asking for registration of public keys will be a useless regulation to me as many will easily by pass this act. For example someone can easily create two or more wallet and then give them the public address of the wallet that they rarely use and use the others to keep their substantial amounts of bitcoin and they’re is no way the government will know that the address belongs to a citizen except he linked them mistakenly together through transactions.

We are aiming for adoption all around the world but is there a way to somehow not sacrifice our privacy in the process? Bitcoin is decentralized by nature and we don’t want to lose its essence.

I should have known that any government would not allow bitcoin to be fully decentralized and would still want to have some sense of control over their citizens and bitcoin.

It doesn't solve anything to be honest, we are just giving more data about ourselves to the government if we do that.

We know bitcoin addresses can be created an unlimited number of times and it doesn't even require much knowledge to do that so on what government can we make them believe we showed/registered every address of our crypto assets?

For the fact, the government is not really trying to solve or stop this money laundering they simply don't want the people to have complete over their money and they just use this as an excuse to attack the decentralization on step by step and we may see someday that government will say we should boycott crypto because it's used for money laundering but they never said when fiat used for the same purpose and they will never do it either.

Which proves what's their intention with these crackdowns.

The government failed to eliminate cybercrimes from their fiat system. The most corrupt money in life are their fiat. The use of the fiat was unable to eliminate money laundering, terrorism financing and other cyber crimes. All these have been existing before bitcoin was created.

Whatever the government says, you will see many people that will follow it. Even if the banks start providing people crypto products and services today, you will see people buying bitcoin in banks and let the banks be in custody of their coins. That is life. It is a natural process because many people do not understand about privacy.

Bitcoin gives people the ability to have full control and gives privacy, but the government will not want those. The government are also going after mixers and no-KYC exchanges. But people that want privacy avoid some of these government policies because with the policies, there are still fiat scam.

The bitcoin blockchain is available to the public, what if people will let the government know about their wallet but any of the government officials can be a bad actor underneath without people known but giving the criminals information needed to steal from people, even with physical attack.

What are they going to do if people don't register your addresses with them? Are they going to stop you from using Bitcoin? They probably can't and they can't do anything about it. They have no way of knowing what addresses you have if they don't register it and if you do; hey, I'll let you track me however much you want!

Surrendering your privacy to the government goes against the very basis of Bitcoin, if you want to do this, then using fiat would probably be more efficient. The day that people willingly do this is when Bitcoin fails.

Criminal activities like money laundering through Bitcoin blockchain and Bitcoin transactions are one of reasons but governments have bigger reasons which they don't publicly admit to their citizens.

As governments, they want to control their countries and citizens, they want money from tax to help their governmental operations lively. They want tax, at the end of all reasons, money is vital for governments.

I am sure they do recognize fact that citizens can hide a lot of their money through Bitcoin blockchain and altcoin blockchains too. It causes massive loss for governments in tax money flows and they will do more things to bang this market, just to eventually regain more tax money like before.

I guess that's what they wanted to do with El Salvador right? You had to open a wallet, but it was using a government app or something. So they knew everybody who used bitcoin and exactly when where etc.

I can wonder though if BTC network will handle even a small country.

Privacy is just one aspect of the Bitcoin network. For me, some of the other features are more important. For example -
- Immutable public records
- Peer to peer unregulated transfers
- Security of assets
- No complex controls over payments
- No fiat ties
- International payments without 3rd party intervention.

Of course there are many others, such as multi-sig and conditional payments. those are just a few of the advantages as I see them.  The government keeps banging on about money laundering and crime, but I don't believe those are the issues. The real issue seems to be the fact that Bitcoin frees people from the fiat crime(s). I believe that if we were able to register our wallets, together with the public keys associated with them, but we kept the private keys secret, then most of the declared objections would no longer be relevant. Of course this would need to be an optional registration, but taking advantage of it could help to expand the use of Bitcoin.