Stablecoin censorship - page 3. | Bitcointalksearch.org

Husires

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Quote from: AnonBitCoiner on October 13, 2023, 10:51:59 PM

If you are very concerned about this matter, use DAI. It is decentralized and no one can freeze the money in your account, but the possibility that its price is not $1 remains the biggest problem.
stablecoins except DAI can be frozen even if they are in your wallet.

A user account on a platform is different from a deposit address in a wallet. I meant the possibility of freezing coins if you withdraw them to your wallet, which is what happened several times after bridges or CEXs were hacked.
Inside the platform, you do not own your coins, but the money is controlled by the platform.

Quote from: AnonBitCoiner on October 13, 2023, 10:51:59 PM

That's mean our stable coin other than DAI is not safe and what is about Dai on other networks such as Polygon, bsc. Dai is Ethereum network coin and we have to pay high fee. It's pigged tokens is available in other networks.. If we hold in matic , our coins could freeze?

Yes, DAI cannot be frozen by the wallet or inside your wallet because it is decentralized. There is a group of auditors and you can contribute to the decentralization of the network if you have a lot of money and buy MakerDAO. The only problem is that its price may not always be equal to one dollar, which is a problem with all stablecoins.

AnonBitCoiner

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Quote from: Husires on October 13, 2023, 10:27:19 PM

Because they do not ban the movements of individuals as banks do, but rather ban major events such as hacking platforms, money laundering, and cross-border charges, but I do not remember hearing the news of freezing an individual account, despite their ability to do so.

That's a point and difference between banks and crypto. I think CEX is not doing any bad here because If dark money used in their exchange then CEX will be responsible for it and also will be blame. This is part of regulatory system. Freezing individual accounts happened so many times but this is just temporary and will back to the normal when user pass investigation process.

Quote

If you are very concerned about this matter, use DAI. It is decentralized and no one can freeze the money in your account, but the possibility that its price is not $1 remains the biggest problem.
stablecoins except DAI can be frozen even if they are in your wallet.

That's mean our stable coin other than DAI is not safe and what is about Dai on other networks such as Polygon, bsc. Dai is Ethereum network coin and we have to pay high fee. It's pigged tokens is available in other networks.. If we hold in matic , our coins could freeze?

Husires

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Because they do not ban the movements of individuals as banks do, but rather ban major events such as hacking platforms, money laundering, and cross-border charges, but I do not remember hearing the news of freezing an individual account, despite their ability to do so.
If you are very concerned about this matter, use DAI. It is decentralized and no one can freeze the money in your account, but the possibility that its price is not $1 remains the biggest problem.

https://bitcointalksearch.org/topic/updated-psa-most-stablecoins-can-be-frozen-even-in-your-own-wallets-5204055

stablecoins except DAI can be frozen even if they are in your wallet.

Dave1

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I'm not really sure why they banned those address, however, I'm thinking that it could be link so darkweb or hacks or anything that harm anyone or crypto in general that's why they got it banned.

However, if you think that you are not doing anything wrong and you have a clean address then on my side, you don't need to be concern about stablecoin censorship. Unless they are like doing a witch hunt or something and just ban any addresses they like or find that suit their banning criteria.

riantolie

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I wasn't. I never held stables for a long time, I've been only using them for some stuff. And I've heard how they froze only accounts of criminals.

o48o

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Quote from: Abiky on October 12, 2023, 09:10:50 AM

-cut-
Thoughts? Huh

If you get your stablecoins frozen you have been using laundered or stolen money, you are a terrorist organization or a black listed person. They don't just freeze joe nobody's money.

And stablecoins are rising popularity is because it's easy to use them for trading in dexes. You can't do that with normal fiat money.
Sometimes it's just practical to convert into something less volatile like value of usd. Sure it's centralized but so is real fiat money. If you want to use money that's not going to be frozen, there still are decentralized currencies out there. But even those can be frozen in CEXes.

Coyster

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Quote from: Abiky on October 12, 2023, 09:10:50 AM

If these entities do the exact same thing banks do, why are stablecoins rising in popularity? Investors could lose it all in an instant without even knowing it (unless they check the blockchain, of course).

Stable coins are centralized and the issuers basically control everything about it, they can print as much as they want (even if it is backed by nothing), or they can freeze it in their customers' wallets if they have a reason to. Stable coins are growing in popularity because some people are ignorant of the risks that are associated with it, whilst others use it because they have to (especially traders). The thing is, irrespective of your reason for using stable coins; you should not hodl it for the long term, use it for whatever purpose you want and sell it for Bitcoins immediately after.

vv181

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Pretty much because they feel they did nothing wrong, so they just simply use it. We know that address censoring usually happens because there is a report of hacks-related funds or other illegal activities.

The deeper question is, does there are cases where stablecoins addresses are wrongly flagged? For example, the user did nothing wrong or illegal, but they got censored. If there are many cases as such, certainly, it won't achieve the current popularity. But if there isn't any or extremely rare, users would simply use it because there is a utility or use case. The possibility of censorship won't be a problem for them.

nelson4lov

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Stablecoins play an important role in the DeFi industry and helps immensely with liquidity of decentralized finance industry. However, the quirk you mentioned is particular to just centralized version of stavle coins. I feel like they do this in order to stay complaint with regulations.

A decentralized stablecoin like DAI doesn't have these type of mechanisms built in for censoring addresses.

The best thing to do is to not do anything with centralized stablecoin that would trigger addition to the blacklist or just use a decentralized stablecoin like DAI. Most of the addresses in those blacklists are addresses that contain hack funds.

Abiky

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Have you ever found yourself a victim of stablecoin censorship? There are records of stablecoin issuers freezing or limiting access to stablecoin funds they deem suspicious. To my knowledge, both Bitfinex (issuer of Tether/USDT) and Circle (issuer of USD Coin/USDC) have been doing this for quite a while. If these entities do the exact same thing banks do, why are stablecoins rising in popularity? Investors could lose it all in an instant without even knowing it (unless they check the blockchain, of course).

See for yourself proof of stablecoin censorship here: https://dune.com/phabc/usdt---banned-addresses

And here: https://dune.com/phabc/usdc-banned-addresses

Thoughts? Huh

Topic: Stablecoin censorship - page 3. (Read 420 times)