Post
Topic
Board Bitcoin Discussion
Merits 10 from 3 users
Re: Bitcoin mixing is NOT money laundering, per se
by
o_e_l_e_o
on 21/10/2023, 08:27:17 UTC
⭐ Merited by BlackHatCoiner (8) ,jokers10 (1) ,Lucius (1)
This is attacking our privacy and Bitcoin altogether.
This.

This isn't an attack against mixers - this is attack against bitcoin itself, against privacy itself. Here is how they are defining "mixing" for the purposes of this report:
The term “CVC mixing” means the facilitation of CVC transactions in a manner that obfuscates the source, destination, or amount involved in one or more transactions, regardless of the type of protocol or service used, such as:

(1) pooling or aggregating CVC from multiple persons, wallets, addresses, or accounts;
(2) using programmatic or algorithmic code to coordinate, manage, or manipulate the structure of a transaction;
(3) splitting CVC for transmittal and transmitting the CVC through a series of independent transactions;
(4) creating and using single-use wallets, addresses, or accounts, and sending CVC through such wallets, addresses, or accounts through a series of independent transactions;
(5) exchanging between types of CVC or other digital assets; or
(6) facilitating user-initiated delays in transactional activity.

This definition excepts the use of internal protocols or processes to execute transactions by banks, broker-dealers, or money services businesses, including VASPs, that would otherwise constitute CVC mixing, provided that these financial institutions preserve records of the source and destination of CVC transactions when using such internal protocols and processes, and provide such records to regulators and law enforcement, where required by law.

This essentially makes illegal everything except fully KYCed bitcoin held on centralized exchanges which report every single deposit, trade, and withdrawal to the US government. Mixers fall under (1). Coinjoins fall under (2). Casinos and sportsbooks fall under (1). Any non-KYC exchange falls under (1) and (5). Any kind of decentralized or peer to peer trading falls under (5).

And most importantly, simply owning your own coins, holding them in your own wallet, and using them as you like falls under (3) and (4). "Creating and using single-use addresses", for fuck sake! You know, the entire way bitcoin is supposed to be used in the first place.

This needs fought against, hard.