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A Possible Legislative Attack on Coin Joins
76 sats \ 2 comments \ @Majjin 29 Mar 2022 bitcoin
I've been thinking about a possible legislative attack on coin joins and I'd like to get people's opinion on this.
What if a law was passed that said that if your bitcoin ever moves from the addresses linked to you, they'll assume it was spent or sold and you will be taxed on it. If you were just moving around your coins to fresh addresses (like in a coin join), you simply have to dox the new addresses and you won't be taxed.
This would be a great way to keep tabs on who owns which coins and how many. People would incentivized to not coin join if they bought from a KYC exchange. If KYC requirements were expanded to include centralized p2p exchanges and Bitcoin ATMs, then Bisq and the like would be the only way to get Bitcoin anonymously.
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1 sat \ 0 replies \ @ugmug 30 Mar 2022
Then everyone, or at least myself, would immediately move bitcoin upon receipt and have a zero gain "sell".
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0 sats \ 0 replies \ @TheBTCManual 30 Mar 2022
If that would be the case I am sure many users would wake up to massive tax burdens and would either need to sell to cover it and may temporarily suppress price and even discourage non-custodial holdings.
As for those who believe in it, they'll move to P2P markets if they don't do it already or move to countries that don't have laws like this
Yes it could be a problem now, but in future if we have payjoins, coinswaps and stealth addresses and submarine swaps between liquid and lightning become the norm, tracking a coinjoined UXTO becomes way harder
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