296 sats \ 4 replies \ @0322ee777777 5 Nov 2022 \ on: Is Mixed 🌪️ Bitcoin Forever “Tainted” ? bitcoin
Technically, yes. But depends how many hops back you or exchanges look. I believe rule of thumb for Coinbase (the co.) was 5 transactions back?
Also worth mentioning utxo management, if your p2p bought coin was mixed then assume the entire wallet is unless youve already done good labels on your utxos and could pinpoint it exacrly.
But bro i wouldnt worry about it. If youre buying from peers you know where we are headed.
Most definitely. I have no plans to ever use an exchange – just curious as to the technical details. Do you know if Coinbase publishes this policy online? Where did you hear that they look 5 transactions back? Wouldn’t that mean I could simply make 6 transactions to myself after mixing?
Apologies if these are dumb questions.
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But depends how many hops back you or exchanges look. I believe rule of thumb for Coinbase (the co.) was 5 transactions back?
Good point about the effectiveness of exchanges looking into the transaction history of coins.
I think if more people use mixing services (which I hope will increase in the future [1]), it will get less and less effective and exchanges would get more incentive to accept mixed coins.
Essentially, the anonymity set needs to get big enough such that associating mixing coins with illegal activity no longer makes sense.
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Part of the problem here is that they already view mixing coins itself as illegal activity.
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It's very likely that they are rejecting mixed coins because the US government has privately ordered them to do so ("if you accept recently-mixed coins, then we will investigate you for financially supporting terrorism"). So in a way, coin mixing is already illegal, but only for regulated companies to accept, because that's the only way the government can fight the mixing of coins.
If that seems absurd, consider that Facebook gave US agencies direct access to delete posts from Facebook. The US very likely coerced Facebook into giving them access (e.g. "If you don't let us delete posts by people we deem to be terrorists, then we will investigate your company for possibly assissting terrorists").
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