Quote from: jonald_fyookball on September 27, 2015, 07:02:30 PM

Quote from: dnaleor on September 27, 2015, 06:57:16 PM

Quote from: Gleb Gamow on September 26, 2015, 02:04:26 PM

Pretend a well-known thief was committed via bitcoins to the tune of millions of dollars (I know, it's a stretch, but let's pretend nonetheless). The crime was reported to authorities, thus anybody having direct information pertaining to the crime but fails to report their findings would, in fact, be committing a crime themselves. Follow me so far?

Enter BitPay.

Tainted coins were presented to BitPay (read: I present to you evidence of a very bad crime), but they turn the customer away (read: Thanks, but we don't want no part of this). At this point, BitPay is privy to evidence related to a major heist. It's bad enough if they just let the entity go with a "Thanks, but no thanks!" as per their new public stance on the taint issue, but they now would put their very existence in jeopardy if they opted to not report the evidence to the proper authorities themselves. But, if they do report each and every suspected instance to the authorities, as they must, that would 100% be badder for them and Bitcoin, the latter self-explanatory, while the former would consist of doling out resources so to not be in foul with authorities spanning the globe (not just in the US). Demanding resources that BitPay has demonstrated they no longer have.

BitPay just announced to the world that they would not accept tainted coinage. Genius! Now that they have demonstrated to authorities that they possess the means to help track criminals, they've put themselves in positions to 100% having to follow through with each and every suspected transaction by not only rejecting the coins, but turning in the suspects sans letting them know that that's the case, for you don't tell suspects that they're goin' be reported. YOU JUST DO IT!

And that's how you destroy your venerable brand in ONLY a few short days. Again, GENIUS!

I suspect there will come a day that a regulated payment processor will be required to send the tainted coins to a government wallet.
If you are lucky, you can claim your coins back when you provide identity information and the source of the coins
if you are unlucky, the government will put you in jail and you loose your coins.

But then people might not like that and stop using payment processors and just deal directly in Bitcoin.
Once a critical mass is reached, people won't need to convert to fiat as much.

But until then (probably years away)....the issue remains.