What do you mean? What to check? If your coins are "dirty"? Every time I hear this, I can't help myself but wonder, who the f... is responsible to decide if a UTXO is "dirty"?
The ones that created this bs from the start. But as far as I know (and please correct me if I'm wrong), their story isn't that your coins are "dirty" but that they came from a wallet participating in illegal activities, thus are "dirty". Or not?
Do we want Bitcoin to be decentralised or not? If yes, then there is no authority to judge. Bitcoin is freedom money, but if we fall into the "dirty" bitcoin trap, then Bitcoin is screwed and it will be used only via ETFs.
OF COURSE we don't! But no matter what we want, they don't, and their power is much bigger than ours. We don't fall into any trap but if it becomes mandatory for anyone who uses exchangers, then "everybody" will follow this way. They start it by putting KYC, then AML, then KYC and AML, Address verifiers, etc. And my question is, how can we fight this? Through DEXs?
As far as XMR is concerned, the situation is different. Monero is a privacy coins which uses ring signatures and confidential transactions, making it essentially impossible to tell who paid who and how much. For me, this is fantastic, but for the authorities that desperately try to make people believe the "dirty" bitcoins narrative, monero is much worse because they can't control it. This is the reason why most centralised exchanges don't offer monero anymore. And this is why most services require KYC to allow you to trade Bitcoin for Monero.
Some of them delisted it, even if you have passed their KYC. Not to mention, that almost all who still have it, only offer the XMR/USDT pair and nothing more (even if CMC posts otherwise, they need to update their market list asap). At some point, I wanted to trade some of my XMR for BTC and vice versa, and it wasn't easy at all.
