Hi all,
Sorry for the confusing title. I'll try to explain:
What if I buy some KYC Bitcoin through an exchange and then move it to a wallet. And then, let's say I either give some of that Bitcoin to someone else (maybe a charity or a friend), or use it to buy something (maybe a used car off Craigslist). At this point, from my perspective, I no longer own that Bitcoin (i.e. it is "beyond my ownership"). But now what if the person who now "owns" that Bitcoin uses it for some illegal purpose? I would have no knowledge of that transaction, but my KYC has "propagated" to the new owner. If that transaction were to be traced, assuming it hadn't been linked with KYC transactions with the new owner's identity, I would still be the last owner of the transaction from a chain analysis perspective, right? This is not something I've heard discussed before (but admittedly I'm new hear). Seems like a risk.
Thoughts?
Thanks.
I understand where you're coming from, but it's quite unlikely that anything unfortunate would happen to you, even if the Bitcoin you sold or moved was involved in illegal activities. I also had a similar question regarding KYCed Bitcoin, which is tied to your identity if purchased through a centralized exchange, but it was mostly regarding the taxation of cryptocurrencies. Unfortunately, if you have transactions on centralized exchanges, it'll always be shown that you have purchased crypto in the past. This is why P2P exchanges come into place—to avoid being screened, even though it's quite unlikely, unless we're talking about thousands of dollars worth of crypto.