Bitcoin Forum

Bitcoin Exchanges in China Must Now Identity All Users

According to the Wall Street Journal, Bitcoin exchanges would be treated like common legacy banks in the fact that they would have to collect information on their users, similar to KYC (Know Your Customer) regulations in banks around the world. This would make them compliant with AML (Anti-Money Laundering) laws to dissuade criminals from taking ill-gotten funds to exchanges to convert into Bitcoin.

http://bitcoinist.com/bitcoin-exchanges-china-identity-users/

As we can see there is various suggestions from different parts of the world to identify bitcoin users.China has taken certain measures on its exchanges and now even more wants to tighten rules.Also US authorities make pressure on Coinbase to disclose the identity of its users and EU also wants to identify all bitcoin users.

It is understandable that they want to put under control using of any cryptocurrency and so try to prevent money laundering, terrorist financing and any other criminal activity.Also there is the payment of taxes,if they know who you are you will must pay tax on your bitcoins.

As stated in the article,identification and centralization of users is total opposite of what today bitcoin represents.

I don't fall for the excuses that governments and indirectly the exchanges use to hide themselves behind. It's nothing more than the government that wants to know who is doing and holding what. Of course, it also helps that they through these measures can also possibly spot people using Bitcoin for whatever shady purposes, but that's just a small representation of their intentions. It's the hunger for control that is driving governments to do all this.