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0 sats \ 1 reply \ @PictureRoom OP 6h \ parent \ on: KYC / NON-KYC Coin Control Question bitcoin_beginners
Wow, this is super helpful, thank you. I had no idea that I could do that in Sparrow.
Could I also use this method when acquiring KYC bitcoin by sending it to a new keystore wallet within sparrow, and then transfer it into the main keystore? The reasoning I ask is with the intent of obscuring where that coinage has gone. Any additional help on good coin control is welcomed. I was thinking about sending to a phoenix channel wallet, then maybe sending that to cold storage on the newly set up keystore via sparrow.
I'm not sure if that makes sense, but hopefully you can steer me where I need.
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21 sats \ 0 replies \ @fanis 4h
Generally speaking adding a hop between a KYC exchange and your main wallet isn't going to do much privacy-wise. If you do exchange ---> temporary wallet ---> main wallet, then any surveillance company with knowledge that the funds sent to the temporary wallet belong to you will be able to infer that those sent to the main wallet also do, especially if the transaction from the temporary wallet to the main wallet is trivial to interpret1.
Additionally coin control, however sophisticated, will never alleviate the fact that the KYC exchange holds a record of how much corn you bought. For instance, if your worry re. KYC is expropriation a la 6102, then the State would still know that you own at least the amount reported by KYC exchanges, and could come take it.
I think a common practice is to keep KYC and non-KYC stacks hermetically separated. It has the added benefit that KYC coins might be useful in the future, e.g. for any transaction that requires proof of origin (such as buying a house).

Footnotes

  1. For example this recent transaction is probably a self-transfer because it transforms exactly one input into exactly one output. The odds of a transaction between two parties not involving any change output are thin, since it'd require the sending party to possess a UTXO that is very close to the amount requested by the receiving party. ↩
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