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What to Do if the Bulk of My Bitcoin Holdings Is From Centralised KYC Exchange?
1167 sats \ 13 comments \ @spiderman 13 Aug bitcoin
I have not been the smartest when buying my sats, and part of it was motivated by what I saw as a good deal, but hey, every noob gotta start somewhere.
So, the bulk of my holdings (not much, but still significant enough for me) are from a single KYC exchange which verified my national id as I signed up. I withdrew the sats to my cold wallet, so a direct rug pull is unlikely.
But still, how worried should I be about the kyc status of my coins? Is there a possible scenario where this will come back to bite me as the exchange knows the specific address belongs to me (hence any transaction originating from the address by me)?
Is there any way I can repair the damage and convert those coins to non-KYC coins? Yeah, I want to stick to Bitcoin, not converting them to Monero or anything.
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205 sats \ 1 reply \ @DarthCoin 22h
Read:
convert those coins to non-KYC coins?
And please stop saying that stupidity. There's no "KYC or non-KYC coins". If that will ever exist, Bitcoin will be a failed system.
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0 sats \ 0 replies \ @megaptera 19h
If that will ever exist, Bitcoin will be a failed system.
Completely agree to that!
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0 sats \ 9 replies \ @megaptera 13 Aug
The only way is to sell them back to fiat on the same exchange, transfer the fiat back to you and buy kyc free coins somewhere else. Even then there is the record about you buying bitcoin. If you "just" mix them, then the exchange does not not where your coins are but they know you have/had them.
If that will bite you in the future is hard to say. It really depends what you think is your thread model. (Taxes, $5 wrench attack etc..)
Maybe you just keep them and from now an you try to get kyc free coins and put them on another wallet.
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10 sats \ 2 replies \ @DarthCoin 22h
The only way is to sell them back to fiat on the same exchange
That's just stupid.
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0 sats \ 1 reply \ @megaptera 19h
why? At least you have a "proof" that you do not have the coins anymore... Depending on the situation it does or does not matter.
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20 sats \ 0 replies \ @DarthCoin 18h
proof for who? I don't give a shit about govs knowing how much coins I have. They do not have any power over my self-custody coins. I give a shit when bad guys got my personal info from leaked KYC data and use it for other shit...
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21 sats \ 5 replies \ @Catcher 23h
Well, it’s definitely not the only way:) there are different mixers, like wasabi , or you can remove kyc through lightning or cashu, though if stack is big, it can be quite inconvenient. But why are you so worried about kyc in the 1st place? As long as you have them in cold storage no one can rug you.
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0 sats \ 4 replies \ @megaptera 22h
I think is is a misunderstanding that you can get rid of the kyc through mixers and the like. The "dangerous" part about the kyc is in my opinion that there is a record on a central exchange which state that you bought X Bitcoin on date Y. Obviously you can get rid of the traceability of your coins by mixing them but the "buy" kyc record will be there forever.
But why are you so worried about kyc in the 1st place?
In this situation, this is probably the right question :)
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40 sats \ 3 replies \ @DarthCoin 22h
The "dangerous" part about the kyc is in my opinion that there is a record on a central exchange which state that you bought X Bitcoin on date Y.
WRONG! That's not the part you should be concerned. The real danger of KYC is that your personal information circulate freely on internet without your consent!
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10 sats \ 0 replies \ @megaptera 19h
Yeah, obviously. Its not that big of a problem if only the exchange knows. But as we all know, this is rarely the case.
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0 sats \ 1 reply \ @Catcher 22h
So nothing to do with your bitcoin:)
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29 sats \ 0 replies \ @DarthCoin 22h
If you never go back to fiat, there's nothing to worry.
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0 sats \ 0 replies \ @OT 20h
You could sell the Bitcoin you have and then buy again p2p. Or you can coin join which doesn't get rid of KYC, but it does make your Bitcoin more private.
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