Every segment of the cryptoindustry is being highly affected by the world’s financial system regulations, hence making it much harder to stay anonymous. 😕 Here are some reasons for that and the ways of staying as anonymous as possible.
Why is blockchain anonymous?
Due to the lack of centralized data storage every transaction can be seen by every user of blockchain, however you aren’t able to see the owner of wallets participating in that transaction.
How is crypto deanonymized?
- Most big exchanges are now implementing the KYC (Know Your Customer) inspection. 🔎
- Smaller exchanges sometimes require and AML (Anti-Money Laundering) 🧺 inspection and will most likely ask you for your email and initials.
- Some countries are legislating certain restrictions or banning cryptocurrency completely. 🛑
Why does all that happen?
The problem here is more ethical, then technical. Binance or Huobi might lose customer loyalty if a scandal about someone using them to launder illegal money and them not having the opportunity to provide information on that person occurs. Exchanges won’t be sued or anything, but KYC is obligatory for building up a safer society with no guns, drugs or slavery. 👮♀️
Obviously, you could be just a regular person who isn’t doing anything illegal and are just mad about their anonymity and privacy. However, no one will be interested in your personal details, unless you break some fundamental laws. 👍Otherwise, crypto is just another way of doing socially harmful actions.
The problem here is pretty similar to bigger ones, because the exchange founders don’t want any problems with the government. 👨⚖️ Thus, having to ask you for your contact details in case they are found guilty for anything. Individuals could obviously be worried about getting spam on their emails, but why not just choose an exchange, that more people trust or a bigger one, if your local banks support withdrawals from crypto. 🙌
The solution to this problem is mostly the same - just don’t do anything illegal. Not to be rude or anything, but the government is probably not too interested in your earnings and spendings. 😁
Government financial inspection facilities usually rely on the level of local experts’ knowledge and the overall government capabilities as well as technology development. 👨💻 It isn’t only that poor countries will think cryptocurrency is a curse, needed to be banned - you can also get more wealthy ones, that are just more traditional and would also think of crypto as a security breach technology. 🚨
Well, the only advice here would be to move somewhere else. However, making a revolution could also be an option.
We hope this article makes things more clear and you now understand why all those inspections are needed - they are not trying to violate your privacy, they are trying to keep you and your close ones safe. 😌
Stay tuned 📻!