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.
You don't really need to worry about that if you buy it from P2P trading you're probably going to be fine even though you get Bitcoin is linked to some illegal transactions, Maybe at some point, if your using a certain platform the worst case scenario is they are going to freeze your money, but in my experience, it doesnt really make sense since there will not be enough evidence to support there claims if you actually link to the transactions. I mean there are a lot of mixers out there maybe they could ban all of the transactions that came from illegal mixers but surely it's going to be a big issue for their platforms.
Also, your KYC doesnt really link to your Bitcoin so you don't need to worry about it, there are only a limited amount of Bitcoin so no one really knows if your Bitcoin is linked to illegal transactions, and if yes there are already a lot of transactions happened on that BItcoin does it mean that all of that transactions are illegal. In my experience, just don't worry about it if you didn't really do anything that is illegal you have nothing to fear about it, unless if you actually have some illegal activities.