Wow! Exchanges track how you spend btc! - page 4.

Pursuer

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Where is my ring of blades...

Quote from: Icygreen on April 22, 2019, 02:12:24 AM

#1. Yes, Bitcoin needs better privacy. We don't need another coin to do it for bitcoin because it'll be built on top. Schnorr signatures and mimble-wimble are attempting to solve some of this now and segwit is the base layer entrance to allow these to happen without a hard fork. Good things take time to build, be patient.

you are wrong about almost everything here!
first bitcoin does not "need" better privacy. it already offers a very good level of privacy. what you had in mind is anonymity and that will not happen either since bitcoin doesn't need that either.
secondly, Schnorr signatures are not for privacy! there is only one thing that is remotely related to Schnorr and that is the aggregated signatures that offers a little privacy for multi signatures not generally.
as for SegWit, we still need a hard fork to enable things such as Schnorr since it is changing the way signatures are calculated and will probably need a new OP code which doesn't exist at the moment.

susila_bai

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I think that they have done this because the user used the funds for gambling that is the main reason of banning him, Apart from that withdrawing to multi address should not be problem, if i am not wrong.

blueteam09

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With exchange platforms that track user history is a criminal act when trying to track the privacy of others. I have every right to make the transactions I want and are not allowed to follow my history. We need to ask these exchanges to stop their customer tracking activities because this is a violation. Crypto investors all want their identity as secure transaction history.

BitHodler

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Quote from: Pursuer on April 22, 2019, 02:02:23 AM

exchanges and generally any centralized place have always been tracking how you spend bitcoin and what you do with it. that is not a new thing not to mention that each of these services have clear Terms of Services which you agree with when you start using them so you can't really complain when they did what they promised you to do!

This. I fail to understand how people continue to complain about how bad centralized exchanges are while they agreed to all terms (terms 99.9% of the people are too lazy for to read) before their account was created.

What I also noticed is how people have been hyping up decentralized exchanges, but most of them haven't even tried using it. They either point at low volumes or that these exchanges aren't developed enough.

Low volumes is not an excuse because most people can only afford low amounts anyway. Not being developed enough isn't an excuse either because they allow you to buy and sell, what more do you need?

The only point of valid criticism is that you can't day trade on decentralized exchanges the way you can do it on centralized exchanges.

Kakmakr

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Quote from: Pearls Before Swine on April 21, 2019, 06:40:39 PM

Coinbase does this exact thing if I'm not mistaken. Crypto gambling is illegal in the states to the best of my knowledge, and if they see you depositing bitcoin from a casino or withdrawing it to one, Coinbase will delete your account. That was true as of a couple of years ago when I heard it was happening but I don't know if that's still their policy.

It should not come as a surprise to anyone that exchanges do this. Just like with kyc policies they have to protect themselves and comply with gov't regulations. They don't advertise the fact that they track you, of course, but most of the big exchanges are probably doing it.

Yes, it is illegal and one of the reasons why a lot of people have lost all their coins or access to their accounts on Coinbase. This is also one of the reasons why you do not use exchanges as a wallet, but rather a way to buy bitcoins to transfer it via a mixer service to another wallet. You then spend the coins from that wallet and not directly from the exchange wallet.

The same goes for the bitcoins that you received from gambling, do not deposit those coins directly from the gambling site. Send it to another wallet and then channel it through a mixer, before you send it to the exchange. Wink

jmigdlc99

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No surprise here. Companies collect your data, even in crypto.

Heck they even offer to pay people to do it and people willingly accept. E.g. membership reward cards and all those reward point schemes. You get points discounts and freebies as the cost of the company collecting data on what where and how you buy things. They use data to control consumers.

If privacy is the goal then truly decentralized and privacy centered crypto is the way to go.

DBronze98

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Quote from: lyks15 on April 21, 2019, 08:39:59 PM

This post have a two faces,a possitive sude and it's negative side. I can say that the possitive side of this issue is our bitcoin will becone more secure because there is an monitoring but I am afraid on the negative side that it can abuse about our privacy because they can view and see our every transaction I think our freedom as a bitcoin owner will violate.

The blockchain system is known to be highly hierarchical and private. I find this very bad when you're self-right violated by anyone you don't want. Controlling transactional information is also one of the ways that wives control husbands who are gambling on the Crypto platform Grin

It is a fun share of me and hope not to attack anyone here.

bitbunnny

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There is some kind of conflict between privacy of Bitcoin users and legal provisions and obligations for exchanges and other platforms.
From the begininig Bitcoin has lost a great deal of privacy due some techiques that ebable tracing transactions but also because of KYC rules and anti money laundering and anti terrorism financing laws. To my opinion law obligations could only get more strict so Bitcoin users will have to decide what is more important to them, privacy or general protection and safety.

Icygreen

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#1. Yes, Bitcoin needs better privacy. We don't need another coin to do it for bitcoin because it'll be built on top. Schnorr signatures and mimble-wimble are attempting to solve some of this now and segwit is the base layer entrance to allow these to happen without a hard fork. Good things take time to build, be patient.

#2. I respect what I think coinmama is trying to do. I think that it wants to re-associate BTC with real people and not perpetuate that BTC is only for gamblers, crooks, drug dealers and degenerates. I don't like that they want to play central authority to a permission-less tech. Seems ridiculous. Censorship is not the way forward.

Pursuer

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Where is my ring of blades...

exchanges and generally any centralized place have always been tracking how you spend bitcoin and what you do with it. that is not a new thing not to mention that each of these services have clear Terms of Services which you agree with when you start using them so you can't really complain when they did what they promised you to do!

in fact that is why bitcoin exists, so that when you dump your fiat for bitcoin you no longer have to answer to anybody about how you choose to use your own money!

DigitalCyberius

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Hmm, that's interesting, but not too surprising. Not sure if anything will change in the near future. We like privacy, but unfortunately, it's been smeared with a bad reputation (which also isn't surprising). You still have the option to use privacy coins if you want, but probably won't get mainstream adoption.

Have a good day,
The Cyberius team.

Yakamoto

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Quote from: kingplaya4 on April 21, 2019, 03:14:16 PM

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

Exchanges are often bound by government regulations once they exceed a certain size, then they have to start complying with laws which often require the exchange to actively take a role in monitoring the activity of their users. It's a nasty thing, and I couldn't ever support it, but that's how it is.

As for the future being based around privacy coins or some other method of limiting the traceability of Bitcoin being implemented, it's unlikely. The community will have to identify their own ways of circumventing the monitoring that does occur, otherwise, they will have to comply with whatever restrictions are placed on them. It's unfortunate, but that is what happens.

I don't think there will ever be a major shift to a privacy coin within the community, but casinos may recommend their use as a means of avoiding the restrictions and spying performed by exchanges.

pushups44

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Quote from: kingplaya4 on April 21, 2019, 03:14:16 PM

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

https://www.reddit.com/r/Bitcoin/comments/bdr9nw/coinmama_is_a_nosey_bitch_tracking_your_coin/

Makes me wonder if Monero or some other privacy coin is the future. I realize he can go to an atm, buy from local bitcoin etc, but a lot of people don't have access to ATMs or don't feel comfortable with P2P. Anyway, what do you think about this? Privacy coins are the way to go, or are their privacy features just waiting to be unravelled?

It's weird that exchanges are held responsible for what users do with their funds. This is akin to ATM machines and banks being held responsible for drug transactions. At least with cryptocurrencies people can be monitored more easily.

MMS2017

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yes it is good if we have many exchanges and we allow them to track our transaction so they can do it because we do transaction from their exchange. And it is now automatic that when you make bitcoin transaction you can send or receive through these exchanges so they can know where you want to send.

spadormie

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I wonder why didn't he use a bitcoin mixer. It could leave you anonymous by mixing your bitcoin with others.

Here are some of those mixers:
-Chipmixer
-Bestmixer
-Bitcoincloak Bitcoin Mixer
-Bitblender

3x2

legendary

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Ahh, Coinmama is a old exchange in crypto ecosphere, it is a shame that they are doing this for their users. I will prefer the coins that is sent from exchange to be tumbled in a mixer and then arrive to my personal address.
Other than that, i would prefer Monero as it is almost untraceable.

mk4

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I don't think services like Coinmama banning users for gambling is anything new, really. Also, I don't think sending bitcoin from address to address isn't going to help that much. He pretty much just made tracking his funds more tedious to track, when done manually by a person(which I don't think is the case).

If you want to be harder to track, mixers and or Wasabi wallet[1] is the way to go.

[1] https://wasabiwallet.io/

pooya87

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Quote from: kingplaya4 on April 21, 2019, 03:14:16 PM

Apparently this guy sent it to multiple different wallets before gambling with it, but coinmama found out and has banned him

his comment doesn't even make sense. he is saying he "Made multiple transactions with multiple companies" what the hell is "companies"! it seems like he may not even know what he was doing, and i wouldn't be surprised if he actually used the same address he received coins from Coinmama to gamble with. otherwise if he simply used one intermediary address there was no way that Coinmama could prove that that third address belonged to him and he could have denied everything.

there is another possibility that he might have been doing it many times. like buying bitcoin 20 times, send to 2 addresses then use them to gamble! that is obvious.

in the end, that is what you get by not reading the ToS and using centralized services instead of using bitcoin.

Kaller

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Exchanges are required by law to know their customers also known as kyc they have to know your ID and name and address technically from a legal standpoint in order to operate legally, but there are still some exchanges which do not require this for some reason.

joniboini

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Quote from: lyks15 on April 21, 2019, 08:39:59 PM

This post have a two faces,a possitive sude and it's negative side. I can say that the possitive side of this issue is our bitcoin will becone more secure because there is an monitoring but I am afraid on the negative side that it can abuse about our privacy because they can view and see our every transaction I think our freedom as a bitcoin owner will violate.

How can it be more secure when essentially this is just a basic feature if you have a blockchain? What those exchanges did are pretty much looking/seeing where did their users spent their money (withdraw) and then try to look whether those addresses are gambling or other sites that are violating their ToS. There's no increase of security here, just basic blockchain explorer thing.

Exchanges who do this must comply with regulations on their respective country, so if there's a positive side to this, is that they can close/delete any account that's somehow related to any banned services on that country.

Topic: Wow! Exchanges track how you spend btc! - page 4. (Read 963 times)