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Lightning Network infrastructure and analytics company Amboss recently announced a new tool called Reflex to help customers make their lightning nodes OFAC Compliant. Reflex allows node runners to ensure their node enforces U.S. trade sanctions, foreign policy, and discriminates against some of the most non-compliant foreign state entities in the world.
Amboss says Reflex increases freedom for node runners. Amboss CEO Jesse Shrader, who goes by Jestopher on Twitter, says "While some of our competitors continue down the fatalistic path of adversarial business practices, Amboss believes freedom and sovereignty can be achieved through compliance." Amboss employees report that the company has started using a new moniker internally which states "Compliance is Defiance." The company is also trying to spread the message that Reflex creating "freedom for node runners" isn't just about giving customers more choices when it comes to customizing their lightning infrastructure, it's literally increasing their overall freedom and that freedom is a direct result of compliance.
Shrader also said that Amboss was planning to drop the term "OFAC Compliant" for nodes that leverage the new Reflex product. Instead, Amboss plans to market Reflex with the term "OFAC Defiant." He clarified the strategy by saying, "Compliance has a negative connotation due to the public's poor understanding about what it means. We are on a mission to help educate Bitcoiners that compliance is actually the boldest method of defiance one can use. By using Bitcoin to help enforce U.S. sanctions and censor U.S. adversaries, you are using Bitcoin in a way that Satoshi never intended. That's defiance. It's extremely cypherpunk. When the state sees how irreverent we are to the ethos of our own community and how willing we are to comply with their rules its going to be a shock to their system. I don't think they will know how to react."
While Reflex is quite possibly the most subversive product ever to be offered by a Bitcoin company, Amboss isn't stopping there. The company also announced that it has new products being developed which will help lightning node runners auto report their activity and revenue to government authorities as well as automation tools which will help them pay their taxes as their owed, in real time, directly from their cold storage wallets. The latter tool is expected to save the IRS millions in compliance enforcement in coming years.
"It's literally impossible to be TOO compliant" the company said in a press release. Tapping into that is a super power. The more we can find ways to comply and the more creative we can be in those efforts, the more free and sovereign Bitcoiners will become.
181 sats \ 3 replies \ @javier 4 Apr
Would you mind to please answer these two very important questions:
  1. How do I declare to IRS the 400k sats I've won routing.
  2. How to declare all the mess of my whirpool coinjoins? It's been thousands of tx and I don't want the gov to miss one single one.
I'm very worried that if I don't do any of the above properly, I could lose a lot of freedom and I could become a paria to my fellow statist fellowships.
Please, I beg you!! Help me!!! I'm anxious!!!
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I would suggest using almost exclusively custodial lightning going forward to avoid these things. You have engaged in some noncompliance it sounds like.
I would suggest walking into the IRS building and begging for forgiveness. They usually work with people who tell on themselves.
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151 sats \ 1 reply \ @javier 4 Apr
Thank you! You saved my life!
I'm going right now to the IRS office and confess everything!
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Make sure to also snitch on any of your friends you know are non complying. They love snitches. Will probably give you a doughnut and coffee for free.
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104 sats \ 2 replies \ @javier 4 Apr
We are not going to make it, are we?
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Only if you comply and pay your taxes.
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We can comply our way out of here
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Bitcoiners are getting smarter and smarter in the face of adversity, so they keep putting regulations and penalties if that's what they want.
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Agreed. The smart thing to do is comply
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Thats what we will do ;)
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154 sats \ 1 reply \ @podconf 4 Apr

Misinformation from The Bugle

PODCONF encourages all Stackers to report The Bugle for misinformation. It is critical that we defend compliance. This is the way to support number go up.  

The Facts (TLDR)

Amboss' Reflex enhances Bitcoin's legal compliance, presenting a strategic move for its future growth and global acceptance. Compliance is reimagined as a strength, securing Bitcoin's legitimacy and sustainability.

Comprehensive Response

In response to the recent discourse surrounding Amboss and its innovative Reflex tool, it's imperative to clarify a few misconceptions and address the critical role compliance plays in the evolution and stabilization of Bitcoin and the broader cryptocurrency market.
The introduction of Reflex by Amboss marks a significant milestone in the ongoing development of Bitcoin's infrastructure, particularly concerning the Lightning Network. The tool's primary objective is to aid node operators in adhering to the complex web of OFAC regulations, a step that is not only prudent but necessary in today's global financial landscape. Contrary to the notion that such measures may undermine the foundational principles of Bitcoin, they instead represent a strategic adaptation to ensure its longevity and integration within the existing financial system.
The stance taken by Amboss, articulated by CEO Jesse Shrader, positions compliance not as a constraint but as a strategic advantage. The reframing of compliance as a form of "defiance" is a bold rhetorical move that underscores a deeper truth: in a world increasingly scrutinized by regulatory bodies, the ability to operate within legal parameters is indeed a form of strength and resilience. This perspective is not only innovative but necessary for the continued growth and acceptance of Bitcoin.
Amboss' efforts to redefine the narrative around compliance, moving from "OFAC Compliant" to "OFAC Defiant," reflect a nuanced understanding of the regulatory environment and the cryptocurrency community's ethos. This approach emphasizes the importance of education and dialogue in shifting perceptions and understanding the value of compliance in securing the network and its users against potential legal and financial pitfalls.
Furthermore, the development of additional tools by Amboss, aimed at simplifying the reporting and tax obligations of node operators, is a forward-thinking initiative that aligns with the broader trend of financial digitalization and automation. These tools not only facilitate a smoother operational process for users but also potentially streamline regulatory oversight, benefiting both the industry and regulatory bodies alike.
It is crucial to recognize that compliance with regulatory standards, particularly in an innovative and rapidly evolving sector like cryptocurrency, is not antithetical to the principles of freedom and sovereignty. On the contrary, it is a strategic approach that ensures the sustainability and legitimacy of Bitcoin as a financial asset. By embracing compliance, Amboss and similar entities are paving the way for a more stable, secure, and accepted Bitcoin ecosystem.
In conclusion, the dialogue surrounding Bitcoin, compliance, and the role of tools like Reflex should be approached with a balanced perspective, recognizing the complexities of operating within a regulated financial system. Amboss' initiatives represent a thoughtful and strategic effort to navigate these challenges, reinforcing the potential of Bitcoin and blockchain technology to integrate within and perhaps eventually innovate traditional financial frameworks.
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How do you justify being FOR compliance? Isn't that anti-ethos to Bitcoin?
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