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 cannot be held responsible for the crimes committed by someone else!
What if you send fiat money to someone and he buys something illegal with the fiat money you gave him? Do you think that the authorities are dumb enough to arrest and sue you instead of the other guy?
You are the not the last owner from a chain analysis perspective. The guy you have sent the BTC is the last owner. It doesn't matter if he isn't KYC verified. KYC verification is done mostly to fight money laundering and tax evasion(even though it's not that effective). KYC cannot stop you from buying something illegal with your BTC(you could use a mixer).