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Topic: Time to Boycott all US Companies (Read 9202 times)

sr. member
Activity: 360
Merit: 250
November 15, 2013, 10:38:46 AM
#72
US Companies?  How about US citizens?

The world of reasonable people has to put the rabid dogs in their rightful cage.  They're still living under the "land of the free, home of the brave" BS that they willingly gulp down in large quantities every day.  Their problem, not ours.  Watching this play out will be very interesting indeed.  We all have front-row seats.

As an ex-US citizen, I kinda resemble this remark. Woof.
donator
Activity: 668
Merit: 500
November 15, 2013, 09:10:31 AM
#71
US Companies?  How about US citizens?

The world of reasonable people has to put the rabid dogs in their rightful cage.  They're still living under the "land of the free, home of the brave" BS that they willingly gulp down in large quantities every day.  Their problem, not ours.  Watching this play out will be very interesting indeed.  We all have front-row seats.
member
Activity: 103
Merit: 10
It From Bit
November 15, 2013, 08:01:48 AM
#70

Im quite surprised that those kind of ideas are put on the table.. This is Anti-Bitcoin, and go against Bitcoin in its essence.  The Bitcoin comunity can do without it, alternative will exist as demand exist.  This is a shame that some are proposing such principle that are SO ANTI-BITCOIN..


With every day that passes, the idea that there is a bitcoin "community", that "gets it" regarding issues such as privacy, resistance to state control etc. becomes less and less tenable.

There are vast amounts of money to be made by siding with "the authorities", and those who are primarily interested in mass-adoption will not sacrifice one satoshi for such principles.  They are here for one thing only: to make boatloads of money.

https://bitcointalksearch.org/topic/mike-hearn-foundations-law-policy-chair-is-pushing-blacklists-right-now-333824

Unfortunately, the most dangerous enemies of bitcoin are members of the community, and it will be the community's fault if they are allowed to screw it up.
legendary
Activity: 1002
Merit: 1000
Bitcoin
November 14, 2013, 08:41:14 PM
#69
Zerocoin? https://en.bitcoin.it/wiki/Zerocoin
--
From the BitcoinMagazine article: "Some of the proposals which have been suggested in the past include: adding the capability to reverse transactions, confiscation of balances, creating a central authority that can whitelist and/or blacklist addresses, and requiring all users to register their wallets with a government agency. So far none of these have been implemented into the protocol but the pressure to do so is will only continue to increase, especially by venture-funded companies, especially in the USA."

If those things will happen to Bitcoin, I will leave it.

Im quite surprised that those kind of ideas are put on the table.. This is Anti-Bitcoin, and go against Bitcoin in its essence.  The Bitcoin comunity can do without it, alternative will exist as demand exist.  This is a shame that some are proposing such principle that are SO ANTI-BITCOIN..

If any instance, govt, powerfull entity ask for it to be apply to Bitcoin.. Why would we comply ?  Afterall, Bitcoin are'nt just the best tool to avoid those kind of things (anti-lliberty, anti-privacy stuff) ?
legendary
Activity: 2674
Merit: 1083
Legendary Escrow Service - Tip Jar in Profile
hero member
Activity: 528
Merit: 527
November 14, 2013, 05:27:39 PM
#67
Many decades ago, Krugerands became tainted. They sold at below the gold spot price. Then one day, everyone woke up and realized that they were still made of gold. Now they are worth their weight in gold again. I suspect the same thing will happen with tainted coins. Hakuna matata, no worries here.
sr. member
Activity: 469
Merit: 253
November 14, 2013, 04:51:15 PM
#66


part of this is to build up a database of clean addresses of legitimate and compliant BUSINESSES not users. and a lidt of known black market withdrawal addresses.
this is so that while the "anonymous cash" still is not directly linked to an identity, government can see the source of the cash.
EG is it just 2 hops away from being mined. is it just 2 hops from being sourced from a compliant and legitimate business (clean addresses) or is it just 2 hops from a known black market.

Right, so if you want to sell me a widget for 1BTC today, how are you going to know how many hops away the coins I pay you with are (from some criminal act)? Perhaps you'll ask me for the address I'm going to send them from in advance. You look on the blockchain. Are you keeping a real time database of which addresses are clean and how clean they are? What if you find that I, or someone one hop away, used CoinJoin and one of the unspent txouts came from 4 different input addresses. Are you going to apply it proportionately to those inputs with a probabilistic weighting? If you're not going to keep your own real time database of dirty coins (plus a full, live blockchain of course), who is? How much do you pay them? Who controls their database (and it better be international, and real time)? What if, between the time I make my order and the time I send out my transaction, it's discovered that 1 of those 4 addresses, 4 hops back, is in fact dirty due to a recent crime?
What if someone who doesn't like me has just sent a transaction to my address with dirty coins and I didn't know, and couldn't control it? Am I again, just screwed?

Is it fair that the bitcoins I bought fair and square suddenly turned out to be unspendable? And we also ignore the enormous extra cost that would be imposed on both of us, costs that would be paid to the corrupt central party holding the database.

These problems are not technical. They are a direct result of the immoral concept of third parties having control of an individual's wealth. This is the kind of system we have today with banks, and it's exactly what we're trying to correct.
hero member
Activity: 714
Merit: 510
November 14, 2013, 04:11:26 PM
#65

they will probably have database viewers, so you can see the clean addresses (legit businesesses) but not allow anyone to add-delete the database. afterall we dont want silk road or sites selling illegal weapons editing the database to say its withdrawal address is legit. or scammers saying they are fully SEC compliant... do we?
and secondly its not about taint.. if your going to visit an illegal site that deals in SERIOUS CRIMES. then it is kind of obvious, simply by looking at the products they sell


And once again why centralize the database around an LLC when a non profit or decentralized method could do the same thing? A wiki can be edited which is a good thing because we don't all agree on which addresses belong on the black list but we probably mostly agree about which addresses belong on the white list. Once again none of this matters for addresses.

Public keys do matter and I would love to have a database of public keys which I can access to know I'm dealing with a legit company and not a scam. I endorse at least that part if that is actually what they plan to implement but based on what is on their site we don't even know what they plan to do. They are vague about it and that is why people are reacting like this. You cannot be vague when you're talking about putting the mark on peoples money. And if that isn't what they plan to do then they need to give an interview or post on this forum for debate.


of course, and thats what makes me feel coin validation will ultimately be useless and that this histeria is not worth the anger its bringing. EG deposit bitcoins into a compliant exchange.. wait a bit for it to be mixed in with other peoples funds(dont trade for fiat). then withdraw the bitcoins. you will now have coins showing as being sourced from a clean address.. you then take it to bitstamp and trade for FIAT, then their coinvalidation checks see the coins are sourced from a clean address and you can easily withdraw funds into your FIAT bank account.

The problem is we don't know what they are planning because their plans are public enough. There will always be crime and ways to beat the system but that is not what I'm concerned about. I'm concerned about democracy more than I am about crime and people beating the system. If you don't have the ability to follow the money then you cannot have a democracy for long.

Democracy is very important as an ideal just like privacy is.

I don't understand how we can have a Bitcoin community which supports the goal of Wikileaks on one hand but on the other hand wants to have completely anonymous money.

You cannot have both. If you want to fight institutional corruption you have to follow the money. If you want anonymous money then you have to accept institutional corruption as the end result.

Many of us work towards what we want and attempt to avoid being coerced. That results in two goals that must seem contradictory to you:
"privacy for the weak and transparency for the powerful"

Bitcoin offers advantages to the weak, not the powerful (i.e. the state). So it should be anonymous. Wikileaks is good because it exposes the corruption of the powerful.

The state and extensions/agents of the state should be transparent because they are coercive and we are all paying for them. As customers we generally want a good product - a transparent state. Or do you want to just "roll over" ?
The state isn't the exclusive place where all powerful people are. All power does not rest within the state.

A lot of Bitcoins are owned by the powerful and a lot of people who aren't powerful now but who own a lot of Bitcoins will become powerful in several years. Just like we would want the ability to know whether or not George Soros, Bill Gates or the Koch bros are influencing politics we would want to know what Satoshi or whomever is influencing. We have every reason to want transparency to be able to follow the money trail of anybody. It should even apply to me if necessary if I ever have a lot of money or I'm considered powerful.

But I don't think it should be used to bully everyone as a weapon of state power. I agree with you that the state should be more transparent but I think "the state" isn't just people working for the government in civilian capacity. If we have an oligarchy then there should be transparency there as well. We need transparency in the state to deal with corruption and we need transparency outside of the state to deal with corruption. There should be no safe havens for people who seek to coerce and corrupt the nation.

So for that reason there should be no bank secrecy. I'm not really a big fan of secrets which can affect the lives of many people. There might be justification for keeping some secrets (national security) and there are necessary secrets but... If you're a person in charge of other peoples lives, who has power over other people, then you shouldn't expect to live a private life where you can keep secrets from the people you rule over. You should expect to have every aspect of your life investigated so that you can be verified/vetted for access.

If you're not powerful then there has to be some line in the sand enforced by law and technological means to protect you from being politically targeted and investigated by the powerful in fishing expeditions. If a powerful person decides to trigger a criminal investigation then they hire private investigators who can watch every thing you do until you commit a crime.

It's not a very fair system. For that reason in order to have democracy and liberty in the system you need privacy to protect the people in the community from political persecution. Any system which can try to link identities to transactions in a database presents a high value target which can be abused if implemented in the wrong way or hacked if not secured.

"You can still spend or use these coins as normal, the highlight is only informational. To clear it, you can contact the operator of the list and say, hello, here I am, I am innocent and if anyone wants to follow up and talk to me, here's how."

I'm not even a libertarian yet this made me wanna puke.

And contact the operator how? If It cannot be done in pseudo anonymous fashion then it removes privacy from the user. The operator should not have to be trusted with identity information of the user.

If this could be done in automated fashion where I sign the coins tagging it with my digital signature (which is clean) but remain pseudo anonymous to the operator then I would be okay with that. I'll play ball with security checks to access certain sites or financial networks but I should not have to give up privacy to do it. I don't think an operator should be given the power access peoples identities linked to their private transactions is what I'm saying. I'm not against these sorts of databases existing if it were voluntary, decentralized and controlled by the user. If the database were stored in a blockchain or some decentralized network where access is granted by the user then it can work better. The user can connect their public key to their real identity and sign or tag certain things which they want to claim so that if their coins are tainted they can say "these coins belong to me and I'm associated with these addresses which also belong to me", "my digital signature is trusted and I have verified my identity with these different places".

If anything we should be moving away from storing passwords and personal identity information on the web in central databases and instead moving to a system of public keys and digital signatures. If a digital signature has a reputation and history for clean transactions and the user claims ownership of certain addresses voluntarily I would be okay with that.

It should be as simple as the system checking to see if the address I'm using is linked to any transactions being investigated by the authorities. If it is then of course websites will want to block that off so as not to be investigated themselves. But if I'm innocent or if I have nothing to hide then I should be able to claim my transactions which prove my innocence. If they ask for your name and address for every site as we saw Bitfunder trying to do then that isn't going to work. Bitfunder was asking for everyone's name and address so they could block people out based on region.

member
Activity: 103
Merit: 10
It From Bit
November 14, 2013, 03:05:19 PM
#64
I had a nightmare last night.  It began like this:


-- Hello, Mr. Hearn?

-- Pleased to meet you.

-- Just have a seat here.  So, are your complimentary Google Glasses comfortable?

-- They're amazing! Took me a while to get used to the left wink button, but I've got it now.

-- Excellent!  So, when the Senator finishes his statement you just need to look at the comment feed on the bottom line, and wink if you feel you can incorporate that into your remarks.

-- And you send $100K to me for each wink, right?

-- The people I'm working for have very deep pockets, Mr Hearn.  They know that you are a very important person in the Bitcoinosphere, and they want to help you make sure that Bitcoin is a success.

-- (insert fawning platitude here...)
hero member
Activity: 496
Merit: 500
Spanish Bitcoin trader
November 14, 2013, 02:31:30 PM
#63
"You can still spend or use these coins as normal, the highlight is only informational. To clear it, you can contact the operator of the list and say, hello, here I am, I am innocent and if anyone wants to follow up and talk to me, here's how."

I'm not even a libertarian yet this made me wanna puke.
legendary
Activity: 1400
Merit: 1013
November 14, 2013, 01:26:09 PM
#62
Everyone should note that franky1 keeps posting damage control in the form of unbacked assertions, never once addressing the actual quotes from the people who are involved in this.

There's also the actions of a one Mike Hearn who is quietly supporting this initiative in the private Bitcoin Foundation forums, where the community doesn't get to see what's going on: http://www.reddit.com/r/Bitcoin/comments/1qmbtu/mike_hearn_chair_of_the_bitcoin_foundations_law/

You're being sold a bill of goods.
full member
Activity: 200
Merit: 100
November 14, 2013, 10:42:15 AM
#61
The Bitcoin Foundation needs a structure like The Pirate Party. It's preposterous that all the power is centralized to US based foundation. Also, people need to boycut Avalon.
legendary
Activity: 1904
Merit: 1037
Trusted Bitcoiner
November 14, 2013, 10:06:09 AM
#60
i tried to avoid alot of waffle in the last post, but it seems more explanation is needed so, replying to all the people that read a newspaper and take what is wrote as gospel:

STOP, CALM DOWN, RELAX.

now let me explain more detail of what my last post did not explain.
ignore the Forbes newspaper article and peoples opinions on what it means for bitcoin users. because it only causes chinese whispers.

now then:
coinvalidation does NOT want identification from every bitcoin USER link: https://coinvalidation.com/PDF_FOR_BITCOIN_USERS.pdf
coin validation wants to advise bitcoin businesses on how to become FIAT compliant, which will only affect bitcoin businesses that exchange bitcoin for DOLLARS, either for customers or for their own internal business needs. link: https://coinvalidation.com/PDF_FOR_BITCOIN_BUSINESSES.pdf

part of this is to build up a database of clean addresses of legitimate and compliant BUSINESSES not users. and a lidt of known black market withdrawal addresses.
this is so that while the "anonymous cash" still is not directly linked to an identity, government can see the source of the cash.
EG is it just 2 hops away from being mined. is it just 2 hops from being sourced from a compliant and legitimate business (clean addresses) or is it just 2 hops from a known black market.

now a bit deeper detail
everyone knows that there are only 12million coins thus far , and that in 2012 silk road transacted more then this amount over the year, meaning a large majority of well circulated coins has at some point been tainted atleast once.

this means that exchanges (being the central points of cashing in-out, profiting, etc, etc) would have alot of their mixed up pot of funds showing up as tainted. this does not make them dirty or illegal.

all coinvalidation want to do is to have a database of fully compliant BUSINESS public keys so that when customers withdraw funds, and use them elsewhere, shops can see that they were sourced from a legitimate exchange, a miner or another legitimate business.

giving the shops the freedom to accept other coins based on the taint level risk
EG if a coin is only 1 hop away from a known silk road address, they can refuse service if they chose to, based on the risk.

it is not about identifying the world population and investigating every user. only those that want to deal with FIAT, which has never changed for decades of government rules

now take your tin foil hats off,
if you actually read the government compliance rules (most established countries rules are very similar) governments do not accept/ reject/investigate every fiat transaction of every business. they request businesses to assess the risk and if deemed obvious as illegally used funds, to then and only then report it to serious crimes departments of government. this puts the onus on businesses to say
"hang on these coins are only 1 hop away from a silk road pubkey" and for the business to then look into the risk of it being a 'serious crime' before sending or not sending info to the government.

EG (A) pawnbroker in detroit. some guy comes in with a $20 bill that literally smells of drugs, he wants to buy a bit of bling. risk level of serious crime: low, requirement for AMLKYC: no
EG (B) pawnbroker in detroit. some guy comes in with a $20,000 of bills  he wants to buy a gold bar. risk level of serious crime: low Requirement of AMLKYC: yes
EG (C) pawnbroker in detroit. some guy comes in with a $20,000 of bills that smelled of drugs and he wants to buy a gold bar. risk level of serious crime: high Requirement of AMLKYC: yes

(A)the pawn broker would accept or reject the $20 based on risk, no ID required, much like any shop selling cigarettes, grocerys, etc.
(B)the pawn broker would ask for ID and other info from the $20k sale, still letting it through after the pawn broker does a quick check that the $20k serial numbers are not blacklisted.
(C)the pawn broker would request ID and check serial numbers of the drug tainted notes and make the decision to either refuse service, to report the customer, or to accept the risk and allow the sale. (third option is ill advised as it could affect the businesses licence status).

the coinvalidation service is not about getting people to write their name and zipcode onto every banknote they use, meaning that coinvalidation is not asking for identity information from every transaction and every public key.

they just want to build up a BUSINESS listing of known legit businesses and illecit businesses thus able to trace back where the funds originated.

Thank you for bringing more details about this project.
altho your intentions seem ok, I do believe you are on a slippery slope, so dont slip!


I really don't see why do you need to keep a DB of dirty coins, tho, can the businesses just see if the person myself " literally smells of drugs " and make a decision based on that. JUST like he would handle someone buying something with gold.

no, this project should NOT include a DB of tainted coins, you compile the DB and we will retaliate.

Edit: my coins are probably 100% clean, and i do not live in the US, so maybe i shouldn't really care very much about this, but i do, let the FBI do this is they like.

newbie
Activity: 51
Merit: 0
November 14, 2013, 09:33:39 AM
#59
I don't understand how we can have a Bitcoin community which supports the goal of Wikileaks on one hand but on the other hand wants to have completely anonymous money.

You cannot have both. If you want to fight institutional corruption you have to follow the money. If you want anonymous money then you have to accept institutional corruption as the end result.

Many of us work towards what we want and attempt to avoid being coerced. That results in two goals that must seem contradictory to you:
"privacy for the weak and transparency for the powerful"

Bitcoin offers advantages to the weak, not the powerful (i.e. the state). So it should be anonymous. Wikileaks is good because it exposes the corruption of the powerful.

The state and extensions/agents of the state should be transparent because they are coercive and we are all paying for them. As customers we generally want a good product - a transparent state. Or do you want to just "roll over" ?
legendary
Activity: 4396
Merit: 4755
November 14, 2013, 09:03:09 AM
#58

But if we don't have access to the database as users then how do we know which sites to avoid so as not to have our coins tainted?


they will probably have database viewers, so you can see the clean addresses (legit businesesses) but not allow anyone to add-delete the database. afterall we dont want silk road or sites selling illegal weapons editing the database to say its withdrawal address is legit. or scammers saying they are fully SEC compliant... do we?
and secondly its not about taint.. if your going to visit an illegal site that deals in SERIOUS CRIMES. then it is kind of obvious, simply by looking at the products they sell

Quote
There will always be crime and ways to beat the system.
of course, and thats what makes me feel coin validation will ultimately be useless and that this histeria is not worth the anger its bringing. EG deposit bitcoins into a compliant exchange.. wait a bit for it to be mixed in with other peoples funds(dont trade for fiat). then withdraw the bitcoins. you will now have coins showing as being sourced from a clean address.. you then take it to bitstamp and trade for FIAT, then their coinvalidation checks see the coins are sourced from a clean address and you can easily withdraw funds into your FIAT bank account.
sr. member
Activity: 302
Merit: 250
November 14, 2013, 08:54:55 AM
#57
The USA can go stuff itself,  who do they think they are dictating to every human being on this planet.

Who cares about money laundering or know your customer.

There will always be crime and ways to beat the system.

It will be the decent folk on this planet that will make the world a better place, not politicians and banksters.

Bitcoin could possibly be the answer to freedom and people want to be ruled by the establishment.

Grow some balls and stand up to them it could be your last chance.

hero member
Activity: 714
Merit: 510
November 14, 2013, 08:54:38 AM
#56
imagine it this way.
every transaction is not linked to your identity. meaning your PERSONAL pubkey wont be on the database. coinvalidation database will have all of the MTGOX, BTC-E, BITSTAMP withdrawal pubkeys, if they meet the government compliants requirements for trading FIAT.
so shops selling alpaca socks can see TXID can be tracked back to mtgox,..... for example. and alpaca socks can say great its not 2 hops away from silk road.
But if we don't have access to the database as users then how do we know which sites to avoid so as not to have our coins tainted?

.. thats about as simple as the explanation of the service as i can see it happening. from reading into coinvalidation and not from reading chinese whispers from a newsaper article
I don't trust the news article or your explanation. We need more information and the PDFs on that site only fuel further speculation.

legendary
Activity: 4396
Merit: 4755
November 14, 2013, 08:34:51 AM
#55
Quote
Why the hell do we need them to do that and why are they doing it in a centralized manner? Why not create a wiki, validation coin or DAC which decentralizes the database so anyone can contribute to or access it? Why do we have to trust some private corporation to guard the database? And these are supposed to be Bitcoiners promoting a centralized database?!

wiki's can get edited..
secondly coinvalidation are not the law. businesses can use them or ignore them.

Quote
Okay this is fine. Can we access the database as users? Can we be assured that we users are validated by our public key without having to give up our pseudo-anonymity? If we aren't connected to any controversial addresses then what?

imagine it this way.
every transaction is not linked to your identity. meaning your PERSONAL pubkey wont be on the database. coinvalidation database will have all of the MTGOX, BTC-E, BITSTAMP withdrawal pubkeys, if they meet the government compliants requirements for trading FIAT.
so shops selling alpaca socks can see TXID can be tracked back to mtgox,..... for example. and alpaca socks can say great its not 2 hops away from silk road.
.. thats about as simple as the explanation of the service as i can see it happening. from reading into coinvalidation and not from reading chinese whispers from a newsaper article

Quote
@franky1 how do you know all that? The pdfs don't give any kind of detail.
the main thing people in this thread seem to be going insane over is the forbes article, where people think their personal addresses will apear on some kind of santa clauses 'naughty or nice' list

from the PDF https://coinvalidation.com/PDF_FOR_BITCOIN_USERS.pdf
Quote
Will I need to register for Coin Validation separately?
No. Coin Validation works directly with Bitcoin businesses and does not add any
additional hoops for Bitcoin users to jump through.
legendary
Activity: 1974
Merit: 1029
November 14, 2013, 08:34:04 AM
#54
@franky1 how do you know all that? The pdfs don't give any kind of detail.
hero member
Activity: 714
Merit: 510
November 14, 2013, 08:32:53 AM
#53
i tried to avoid alot of waffle in the last post, but it seems more explanation is needed so, replying to all the people that read a newspaper and take what is wrote as gospel:

STOP, CALM DOWN, RELAX.

now let me explain more detail of what my last post did not explain.
ignore the Forbes newspaper article and peoples opinions on what it means for bitcoin users. because it only causes chinese whispers.

now then:
coinvalidation does NOT want identification from every bitcoin USER link: https://coinvalidation.com/PDF_FOR_BITCOIN_USERS.pdf
coin validation wants to advise bitcoin businesses on how to become FIAT compliant, which will only affect bitcoin businesses that exchange bitcoin for DOLLARS, either for customers or for their own internal business needs. link: https://coinvalidation.com/PDF_FOR_BITCOIN_BUSINESSES.pdf

Finally a well reasoned and thoughtful explanation not based in fear.

The problem is that coinvalidation could be a trojan horse. We just don't know the details and part of the reason why is they didn't put a good explanation on their website. The other problem is they named their business coinvalidation. When I see an invalid address it means the address is not accepted. An invalid transaction means the transaction is not accepted by the network. That implies something else.

part of this is to build up a database of clean addresses of legitimate and compliant BUSINESSES not users. and a lidt of known black market withdrawal addresses.
Why the hell do we need them to do that and why are they doing it in a centralized manner? Why not create a wiki, validation coin or DAC which decentralizes the database so anyone can contribute to or access it? Why do we have to trust some private corporation to guard the database? And these are supposed to be Bitcoiners promoting a centralized database?!

this is so that while the "anonymous cash" still is not directly linked to an identity, government can see the source of the cash.
EG is it just 2 hops away from being mined. is it just 2 hops from being sourced from a compliant and legitimate business (clean addresses) or is it just 2 hops from a known black market.
Why do we need a centralized database? Why not use decentralized methods so that everyone can access the information?
now a bit deeper detail
everyone knows that there are only 12million coins thus far , and that in 2012 silk road transacted more then this amount over the year, meaning a large majority of well circulated coins has at some point been tainted atleast once.
Every currency is tainted.

this means that exchanges (being the central points of cashing in-out, profiting, etc, etc) would have alot of their mixed up pot of funds showing up as tainted. this does not make them dirty or illegal.

all coinvalidation want to do is to have a database of fully compliant BUSINESS public keys so that when customers withdraw funds, and use them elsewhere, shops can see that they were sourced from a legitimate exchange, a miner or another legitimate business.
Okay this is fine. Can we access the database as users? Can we be assured that we users are validated by our public key without having to give up our pseudo-anonymity? If we aren't connected to any controversial addresses then what?

giving the shops the freedom to accept other coins based on the taint level risk
EG if a coin is only 1 hop away from a known silk road address, they can refuse service if they chose to, based on the risk.
This presents problems. How can these coins be exchanged if we do that? As far as I understand it most coins are already clean and purchased from exchanges and not second hand. Sure when you buy coins it does make sense to have to give your information out if you're buying or selling for fiat (tax purposes too).

it is not about identifying the world population and investigating every user. only those that want to deal with FIAT, which has never changed for decades of government rules

now take your tin foil hats off,
if you actually read the government compliance rules (most established countries rules are very similar) governments do not accept/ reject/investigate every fiat transaction of every business. they request businesses to assess the risk and if deemed obvious as illegally used funds, to then and only then report it to serious crimes departments of government. this puts the onus on businesses to say
"hang on these coins are only 1 hop away from a silk road pubkey" and for the business to then look into the risk of it being a 'serious crime' before sending or not sending info to the government.

EG (A) pawnbroker in detroit. some guy comes in with a $20 bill that literally smells of drugs, he wants to buy a bit of bling. risk level of serious crime: low, requirement for AMLKYC: no
EG (B) pawnbroker in detroit. some guy comes in with a $20,000 of bills  he wants to buy a gold bar. risk level of serious crime: low Requirement of AMLKYC: yes
EG (C) pawnbroker in detroit. some guy comes in with a $20,000 of bills that smelled of drugs and he wants to buy a gold bar. risk level of serious crime: high Requirement of AMLKYC: yes


We will see how they implement that. Maybe coinvalidation should hire you to do public relations because they totally suck at how they presented it. The media of course may have gotten carried away but they presented it as if they are building a database to tie names to wallets. That is a nightmare.

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