Bitcoin Forum

recently i discovered doing otc that its possible to buy dirty bitcoins from someone and then when you try to sell it on an exchange the account gets frozen  :-\
does anyone know how to know if a btc is clean this ?

kind regards

You can do AML check. But to be honest in Bitcoin ecosystem there are no coins as dirty. It's the government who wants to decide what they want. It's better to avoid centralized exchanges.

How can you decide the 1 dollar bill in your hand is dirty or clean?

Just make sure you are doing something legit which is what that is important. There are many blacklisted and tainted coins is what the reality is. Some tainted coins even could go to exchanges.

There are some sites that have the listed of blacklisted coins but most traders is not what they look at or bothered about. Most bitcoin traders do not even know how to check for it. Just make sure you have proof of source of funds.

The advice is OK, but regardless, if there is clear evidence of the origin of the money, the exchanger can go further and look for a deeper origin from the previous owner.
The best advice for the OP is to check their conditions and the way they do AML analysis before using any exchanges, as well as some experiences of previous users.

It is dirty if its serial number was marked as stolen or related to other crime. If you get it from the criminal then it makes sense it's taken away from you (besides other consequences). If you get it several months/"hands" afterwards then you're obviously innocent.
Something similar should apply for bitcoin.

This bank like platforms (Centralized exchanges) got you thinking that there are now dirty Bitcoins and clean bitcoins? We really are in the sad times now!

Anyway, here is a thing. If you don't want your coins to be labeled as "dirty" or frozen for whatever reason. Still to decentralized and no KYC platforms. If you want to have that false sense of transacting in only "clean" coins at the expense of your privacy and anonymity. Stick to only crypto banks (centralized exchanges)

It is better to avoid depositing your money to services that classify bitcoin based on blacklisted/dirty.

As an answer to your question, you should keep the source of the coins you bought. For example, if you bought them from coinbase, keep the sales receipt, etc. Otherwise, using mixers that give a low AML score may save you a lot of headaches.

From what I understand, you are talking about the OTC (Over The Counter) acquiring method of BTC/ coins. Indeed, if the OTC trader/ seller is an unknown individual, you can be in a middle of a shitstorm when you will want to liquidate them through a CEX exchanger. However, aren't the coins themselves "dirty" but the wallets (addresses) that came from and the suspicious activities (if any) that were involved. Chainalysis, CipherTrace, and Crystal Blockchain are some of the most common platforms/ services for tracking the road of the BTC.

For what I have seen during these years: only coins directly received from a scam wallet are frozen. (I am talking about bitcoin).
Meanwhile in some cases some coins/stable currencies could decide to frozen also after some passages - in their terms and conditions is clearly listed.
With dex and any similar platforms you can't have such issues.


What did you mean? How an user can complete an AML check?

Don't use centralized exchanges and switch to decentralized trading alternatives like Bisq or Robosats, all bitcoins are equal there.
I know there are somn bots and services that can give you some coin rating, but there is no guarantee this would apply to all centralized exchanges, they can freeze your coins and account at any time and for any reason.

That's easy: it's most likely dirty (https://en.wikipedia.org/wiki/Contaminated_currency)!

Yeah, that’s a real risk in OTC. If you buy BTC that’s been through shady stuff (e.g. hacks, darknet, etc.), some exchanges can flag it and freeze your account.

Best way to stay safe? Use tools like AMLBot or Chainalysis-style checkers to scan wallet addresses before you buy. Not perfect, but way better than getting stuck with "dirty coins."

With the amount of BTC that passed through silk road and the likes, I think only newly mined coins can be called clean.
I remember people paying a premium for such newly mined coins.

Wow, how does it feel coming back to the forum after 9 years?
There is no such thing as dirty coins, it's all a made up story that can possibly target the most vulnerable ones, who fear that governments will hunt them down because they have a wallet with some coins in it.
There is no way to tell if a coin is "dirty", because to define dirty you must first censor some addresses. But who is responsible for censoring addresses since Bitcoin isn't authorized by any individual or entity?!
It's all a game of power. They just invent things to try and control bitcoin because they can't control it otherwise.

Having a proof of funds source is a separate thing, even you can have a legit proof of source but the sending party may still have sent you the dirty bitcoins  ;)

I don't think there is anything like dirty bitcoin. Yes, sometimes if you get funds from some sources such as illegal mixers and those addresses are being tracked (hackers etc) and if you deposit those (tracked) bitcoins to exchanges, they may freeze your funds. Also i know sometimes if you deposit the funds from gambling site to some particular exchange they have freeze your accounts too. However, getting bitcoin from anywhere and keeping it in your decentralized wallet puts you in no harm.

However, the problem arises when you need to cash them out. Besides DEX's , which all of them need more time than CEX's for cashing out and different limits, where would you do it if your wallet had some "dirty" coins? Having them in a wallet doesn't hurt, but when it's time to get them out in a fiat, then things are getting tougher.

Many of these tools are available as online platforms or even Telegram bots (e.g., @cryptoaml_bot, @AML_checking_getblocknet_bot), and they can check wallet addresses or specific transactions for a small fee

Once again, I don't like the fact that too many people believe the "tainted coins" narrative.

But since some DEXs can lock your coins (https://bitcointalk.org/index.php?topic=5540023.0) and get you in trouble until you comply with their AML policies, it looks like the problem is much bigger. People are afraid of tainted coins and companies follow stupid policies to comply with stupid rules.

Therefore, I must answer based on these facts.

There are various ways to do it:

1. BISQ, where you can exchange BTC for multiple FIAT payment methods.
2. P2P, although there is a big security risk and I don't suggest face-to-face trading. You can do digital P2P though. You can even use this forum for this purpose.
3. Use services that sell various giftcards and use them to pay for goods in your local region. A good service, so far, is Bitrefill (https://www.bitrefill.com/gb/en/). Essentially this is encouraged because it facilitates the "living on bitcoin" idea.

I don't disagree with you, it's indeed stupid, and we know why they do it. But it's a fact that they do it and force you to follow it.


I didn't say that you can't find alternatives, but none of them are fast or easy-going. Since people believe that they can be at risk, all aspects and options are affected. I mean that people who use Bisq or P2P can also be afraid that the coins that they will get are "dirty". It isn't as easy as it sounds. :-\

Oops, sorry, I interpreted this as a question, but perhaps it was rhetorical:




Yes, but it doesn't really matter because nobody can anything about it. The self-custody aspect reigns when you use Bisq. The problems arise when you use any service that takes full control of your coins.

So, if someone uses Bisq, can they change their coins and at the same time kind of "wash them out" and make them "clear"? Sorry for my question, but I don't know much about Bisq (besides the basics), although I'm very interested in joining and starting to do more trades there.

Tbh, using Bisq does not "wash" or "clean" bitcoins in the sense of removing their transaction history or making them untraceable. You can convert them to XMR.

No, Bisq is a software that:
1) facilitates users to transact and exchange assets & currencies
2) is peer-to-peer
3) is decentralised, meaning that there's no central authority acting as middleware in the transactions

Bisq isn't a software that launders money. It's not a tool to distort the history of the coins you own, rendering them untreacable.

You can use Bisq to convert your Bitcoin to other currencies (both crypto currencies and fiat currencies).

For example:
(a) you can sell BTC for GBP and receive the GBP on revolut.
(b) you can buy BTC spending EUR in the form of an amazon giftcard.
(c) you can exchange BTC for ETH and vice-versa.

Like Trevoid said, if you want to, basically confuse, chain analysis companies and make them lose you traces you can indeed convert BTC to XMR.
If you do so, only you and the person who sells you the XMR knows about this transaction.
Owning XMR and spending in XMR can be good for privacy because Monero is a private coin, meaning it can't be definitively traced back.
If you want to keep BTC, you can convert to XMR and then back to BTC, but in this case you will receive a UTXO that you have no idea where it comes from. Which is exactly what happens with your initial BTC that you had. So it doesn't help, unless you know for a fact that you must for some reason get rid of the BTC you have and get random BTC in return.

If I could just make one single comment out of all this conversation, I would say that in Bitcoin it's impossible to erase your coins' history. It doesn't matter what UTXOs you have, they will always have a history to tell. The only thing you can do, as I said, is to try to confuse chain analysis companies. But, beware! If you try to confuse them, you will have to pay fees and there are no guarantees that the coins you will get will pass future chain analysis checks.

Man, simple thank you. Not that I didn't know most of the things that you post, but your explanation leaves no doubts about how Bisq (and chain analysis) works. You fill some gaps in my knowledge, and thank you for this. 8)
By the way, I don't face any issues, or I'm in a special need to "clean" any of my BTC. Also, I have XMR and I support it from the moment it was created it and there is no other coin like it in matters of privacy and anonymity. However, it isn't a coin that I use for my spending, but mostly for my "vault".

If you are worried about this, just don’t do any p2p stuff.

Big crypto exchanges use complicated chain analysis tools to determine which addresses are carrying any “dirty” coins.

Since you don’t have the same resources as the big crypto exchanges, you’ll get fooled easily if a criminal decides to do business with you.

Then you’ll probably try to dump those coins on an exchange without knowing what they are and boom, here comes the endless questions about where you got those coins.

They’ll seize your coins and you will probably be threatened to do some jail time unless you prove your innocence.

is there way to check freely or all tools paid? also is there dirty xmr also i wonder?

What do you mean? What to check? If your coins are "dirty"? Every time I hear this, I can't help myself but wonder, who the f... is responsible to decide if a UTXO is "dirty"? Do we want Bitcoin to be decentralised or not? If yes, then there is no authority to judge. Bitcoin is freedom money, but if we fall into the "dirty" bitcoin trap, then Bitcoin is screwed and it will be used only via ETFs.

As far as XMR is concerned, the situation is different. Monero is a privacy coins which uses ring signatures and confidential transactions, making it essentially impossible to tell who paid who and how much. For me, this is fantastic, but for the authorities that desperately try to make people believe the "dirty" bitcoins narrative, monero is much worse because they can't control it. This is the reason why most centralised exchanges don't offer monero anymore. And this is why most services require KYC to allow you to trade Bitcoin for Monero.

Use a mixer that buys your dirty coins and gives you clean coins in return, for a small commission.

It sounds counter-intuitive, but it works!

But the question is, how do you know the coins are "clean"? Who do you trust to tell you that the coins are "clean"?

And the funny part is: the "status" of a coin can still change after you got it :)

The ones that created this bs from the start. But as far as I know (and please correct me if I'm wrong), their story isn't that your coins are "dirty" but that they came from a wallet participating in illegal activities, thus are "dirty". Or not?


OF COURSE we don't! But no matter what we want, they don't, and their power is much bigger than ours. We don't fall into any trap but if it becomes mandatory for anyone who uses exchangers, then "everybody" will follow this way. They start it by putting KYC, then AML, then KYC and AML, Address verifiers, etc. And my question is, how can we fight this? Through DEXs?


Some of them delisted it, even if you have passed their KYC. Not to mention, that almost all who still have it, only offer the XMR/USDT pair and nothing more (even if CMC posts otherwise, they need to update their market list asap). At some point, I wanted to trade some of my XMR for BTC and vice versa, and it wasn't easy at all. :(

Yes, exactly, but there is a huge chance that your coins have been used in illegal activities in the past. The same high chance also exists with FIAT currency. All I am saying is that you can't possibly know everything about your coins. A currency must be simple, if it's not, then it's worthless.


I think you wanted to say "of course we want", because I understand that you want, like we do, Bitcoin to be truly decentralised.

LoyceV has said a great thing about your question:


So, how do we fight it? With a plethora of choices to choose from and the freedom to rate the services so that we can help each other in finding the right tools in this fight.


I like both XMR and BTC, I occasionally use XMR and mostly use BTC. When doing P2P transactions, everything is fine. When doing exchanges etc, unfortunately AML / KYC checks ruin a lot of my experience.

Fiat? That's the dirtiest currency of all time!


Lol, sorry for this man. ;D


So, if someone wants to erase their tracks, the best solution is to start being a more active user of XMR. Dealing with it will be private and, in time, will erase any footprints.
Then you return them in BTC, and that's it. 8)

Note that,

Most of the centralized exchanges (CEX) such as Binance, Kraken, KuCoin and others, quarterly provide information on ALL transactions within the exchange in the form of CSV lists, including all XMR information, including wallet addresses. They send these lists to everyone who deals with tracking and investigations in crypto, such as Chainalysis. This is obvious, but it needs to be stated: if you send or receive Monero using an (CEX) wallet, there can be no talk of anonymity at all. The exchange remembers the wallet address, amount, date and time, IP address and everything that can be remembered.

I would advice choose platforms that respect privacy and have minimal KYC/AML requirements...

Of course, it's noted.  If someone wants to follow this strategy, they will have to do it specifically outside of any CEX. But as I said, there are not many CEXs that have XMR listed. So, it's like they force you to look for alternatives, and if these alternatives are better, then we should start taking them. 8)

Wanted to watch this but platform glitching and would not let me.
Marking this.

Sure another tip for you,

Spend your XMR (withdraw) in parts; don't send everything at once to one wallet in a large volume. In the blockchain, most transactions range from 1 XMR to 100 XMR; other volumes will stand out significantly.

And lastly, if you need Secure No KYC-AML Crypto Swaps let me know, good luck!

You can insert the destination address into any AML checker, free or paid, for proof. Those services usually use the same blockchain analysis engines as commercial products. The disadvantage is that your address is stored in a private record forever, but that is probably irrelevant if it's only been used for receiving mixed coins.

In fact, this won't really help, because the transactions are confidential, meaning the output amounts are hidden. For reference, take a look at this transaction: 2fe46d3a8c5b0df6de60e248d135b07eb2b04fd63f31d16cba45ceee210ee785 (https://localmonero.co/blocks/tx/2fe46d3a8c5b0df6de60e248d135b07eb2b04fd63f31d16cba45ceee210ee785).

Hi apogio, yes Monero’s use of RingCT and their trans are confidential (Ring Confidential Transactions)

but i guess there is a misunderstanding let me go explain some potential privacy risks, lets say you are using cex and if you withdraw from it repeatedly to the same wallet, or if you combine multiple known outputs in a single transaction. This could make it easier for someone (like an internal records) to link your activity and see who you are. This is a potential privacy risks for me and i wanted warn others. Thats why spending in parts could avoid this. (attention from the exchange or link to your activity)

(fake) example story : a h*cker demands a ransom of $250,000 in Bitcoin, which is (lets say) 3.62 BTC and he is paid 3.62 BTC. He knows that Bitcoin is tracked and goes to an exchange that does not require KYC, any documents and exchanges his BTC for XMR in several transactions. Since he doesn't trust this exchange, he transfers XMR several times to cold wallets, and after that, he exchanges XMR for Bitcoin somewhere and sends it to Binance to withdraw these funds to his bank account. It seems like a complex chain: Bitcoin > XMR > XMR > Bitcoin and this can be tracked, all due to the volume and time interval (because it can link to your activity). The volume of $250,000 is quite large, and even if it occurs over a week, there may be only 1 or 2 similar operations for that amount, which greatly simplifies tracking, as such operations stand out among the mass of others.

There are real people, h*ckers, dr*g cartel etc. who have received real prison sentences, established precisely through payments in Monero, they believed transactions are confidential and safe but use it on wrong way and get caught.

Hi,

the thing with CEXs is that they track (and they are supposed to track) every transaction their users make. So, if you deposit $500 three times and immediately buy and withdraw the XMR to your self-custody, the CEX will know the following:

(a) Trêvoid deposited $1500
(b) Trêvoid bought 2 XMR, then 2.1 XMR and then 1.9 XMR with this money, leaving them with a total of 6 XMR and $0.
(c) Trêvoid withdrew 1.5 XMR to address XYZ, then 2.5 XMR to address OPK and then 2 XMR to address UJM.

They have this knowledge and they can share it with any authority that can legally ask for it.


What if you remove the red part that I highlighted in your text? If the criminal decides not to cash out on their crypto, then it's essentially a very difficult thing to track. It's almost impossible. The trigger point for the authorities comes from the fact that some user X, who can't justify their crypto income, suddenly send (even in small parts) $250,000 to a CEX to cash out. This should make the CEX suspicious.

Centralized exchanges are basically like banks, but (at least for the moment) less strictly regulated, and I assume they'd actually share more data with more different governments than banks do.
For both, it's safe to assume they keep all records of all transactions forever.

If I go to an ATM 3 times, and take out €500 3 times, all the bank knows is that Marcel now has €1500 in his pocket. If I were to deposit that again, they can assume it's the same pile of bills or different bills. But if someone else deposits €1500, they have no idea if there's a link between the transactions. XMR is more or less the same.

Generally, if you follow a strategy, you must calculate and measure all variables. One of them is never moving amounts that can trigger alarms by themselves. So, even if XMR is private, sending 2k XMRs is an alarm of its own.


Probably I will. Thank you!


The problem starts from the moment you use a CEX for cashing out the f... Fiat, and not only with XMR, but with all coins. The conclusion is that the best way is to use P2P and privacy-based coins (I don't know any other besides Monero). However, even in this case, you will never know if your coins are 100% "clean".

I am not entirely against CEXs, I want to emphasise that!

Like LoyceV said above, let's say that I (apogio) withdraw 0.1BTC from Binance and 1 month later you (bias) deposits 0.1BTC on Kraken and request to sell it and withdraw the FIAT to your account.

Now, in the meantime, we may have transacted P2P and I may have given you that 0.1BTC.
With BTC, the UTXOs are totally and provably different each time, which means that the 0.1BTC can be traced back and the authorities can see where it originated from. There are ways to obfuscate the history, like we discussed above.
With XMR, you can think of it as a BTC UTXO, which, by protocol rules, is mixed everytime it's transacted. It's like having the mixing feature plugged-in on the base layer of the blockchain. Which means, that there is no way for Binance and Kraken to know that you have transacted with me, but they can guess it is.

That's why the invented the KYC/AML algorithms. Because the want to be able to catch the scenario where I, being a criminal, may send someone my coins and this someone may use them elsewhere. So, the KYC/AML algorithms provide a "score". In our example, if you were to deposit 0.1BTC that you, somehow, received from an unknown source, they will request all this data, because they are sure, or they guess that the 0.1BTC derives from illicit activities. Which is totally annoying, because if you think about it, this guessing game will almost always be completely arbitrary.

Yes that correct, if we remove that part it will be difficult thing to track. But also if you have done KYC on your CEX, it can also be linked to you. CEX will know only record of your deposit, trading, and withdrawal activities. Also once you withdraw xmr to your own wallet, the privacy features of xmr make it nearly impossible for anyone to trace further movements.

I'm not "against" them either. I'm against the KYC/ AML policies that they have to follow and comply with. But in the times that we live in, I don't expect better treatment from authorities.
I wanted to ask (in an imaginary scenario) if BTC changes its code and protocols and inserts the same mechanism as XMR. It will be a tremendous change, and since BTC is the King, nobody will delist it or isolate it. So, what will happen to all of the CEXs and the general anti-money laundering methods?  What will they do?

Good question. I prefer not to answer, because I am not very technically capable, but I 've posted a new thread (https://bitcointalk.org/index.php?topic=5543215), where I hope that bitcoin contributors, or in general, more technically savvy users will answer.

You messed up the quote, but ok.

You can't get a concrete answer to this because it all depends on which AML check method a service uses.
Here are some examples. Two different exchanges recognized the same funds differently. One found an 80%+ risk score, while the other had no problem because the risk score was below 30%. (checked one of my addresses)
Next, many instant exchangers use an AML check by Whitebit, which necessarily marks all coins and transactions related to eXch as high risk. For example, Binance did not cause a problem with coins related to eXch.

So, AML crap has become quite individual; you just have to pay attention to which service you use and where you send your coins.

Here is an example of a response I received from an exchange after they stopped my order.

Well, I faced the same issue with the WhiteBit exchange. I send an Alt coin that I wanted to cash out and they requested to verify (?) both the sender's address and the recipient's address (the one I used to withdraw after the sale). I sent them an instant message to find out the reason for this, and they told me that they need to know for our protection...🙄🥱
By the way, is it possible to tell us what happened after you got this reply from them? I mean, do you get your coins back? Did they blacklisted you? Did they let you continue without a problem?

Whitebit is probably the worst example of (mis)use of AML checks. There are numerous cases of complaints against them, and they were risky even before the AML euphoria, and it seems that this only gave them additional justification to manipulate transactions.
It is recommended to avoid them.

It is a local exchange (certainly not Whitebit) mentioned above. I received a refund, the process took about a week.

I didn't want to even sign up there, not to make a trade and pass all their stupid KYC/AML procedures. However, it's the only exchanger which have listed the alt that I have. So, I didn't have any other choice but to get there and sell it. Thankfully, it will take a lot of time to revisit it and make something there.


Good to hear it. It's been cases where the exchanger holds the coins and doesn't return them to their owner, or they blacklisted them for future transactions.

Even more amusing is that the coins that the exchange returned to me had a 1% risk score. In a way, they 'cleaned' my coins even though they refused to process the swap order.  ;)

That is pretty ironic  :)

they wouldn't process your swap but ended up returning your coins with a lower risk score, so the refusal kind of acted as an unexpected “cleaning” of your assets.

Did they consolidate your coins to their own address, or did they return it directly from the address you deposited to?

Who determines this "risk score"? I'd say this just confirms the "risk score" is mostly arbitrary.

First, they asked me for a new Bitcoin address, because their system does not allow them to send to the original one from which I sent coins, because it is "compromised". In a short analysis, I did not find a connection between the 'dirty' coins that I sent and those that I received in return.

They use Elliptic to check the 'risk score'. As far as I understood them, it is a tool used by service partners, where they forward/sell coins.

Well, that's the best case scenario that I have heard of. Where did you make the "risk score" check to see that 1%? Or do they tell it to you? From what I heard, they guide you to check it through the checker provider that they use.


The whole situation is arbitrary from the start. We know that they want to know and control everything. Since every exchanger uses another AML "risk checker" service, we can say that any of them can black listed whatever address it "sees" fit. However, if they cooperate between them and share their info regarding "black address", then we will face the same issue in any exchanger. It seems that we are not far away from this becoming a regularity.😟

I am happy for you, I am still not getting my coins back from Godex (https://bitcointalk.org/index.php?topic=5540023.0).


They use some algorithms for this purpose There is a service called Chainalysis (https://www.chainalysis.com/) and I know it's widely used by exchanges.

In my case, it was a fully regulated and licensed exchange service. Whom he could very easily take to court and most likely win the case with additional big costs for them. In doing so, they might risk the license issued by the central bank.

Unfortunately, we have reached a point where some 'wild' services block users' funds without any accountability and decide for themselves what to do with that money.

Oh yeah the difference is obvious, of course.

Once more, I will quote Loyce, who explains it perfectly here:

I don't disagree at all. However, if an exchanger wants to be regulated, then it must ask for KYC. It can't be regulated in any other way. Also, trust doesn't come because an exchanger is regulated. We will never know if and when an exchanger is fraudulent or blows up like a firecracker. That's the reason that we try not to have everything on them, it's not our wallet, and will never be.

Yes, it's not about trusting them keeping your money, but more about trusting them offering the exchange service. In my case, I 've not asked the exchanger to hold my funds for me, I just asked them to do a swap. And, since they refused to do the swap, I asked them to return the funds back to me. But they haven't responded... That's unethical, isn't it?

If they want to be regulated, they themselves shouldn't be anonymous and hiding in some tax haven. Regulated companies (and governments) leak enough data as it is, I'm not sending my personal documents to unknown actors.

Many Bitcoin casinos and exchanges started this way: some guy creates something nice that gets out of hand, and suddenly they're earning a shitload of money they can't spend legally if they don't become regulated. Quite literally all the exchanges and casinos I first saw when I started in Bitcoin, went from completely anonymous to full KYC or they stopped existing.

If it's registered in my own country I'd trust it a lot more than if it's somewhere I have no idea how the legal system works.

Agreed! Only send to exchanges what you want to exchange, and take it out as soon as possible.

Some would call it theft.

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It's a catch-22 for good, trusted anonymous exchangers: being good and trusted means they'll get bigger. And if they get bigger, they'll eventually become a target for authorities (or at least some of the many different authorities out there). That makes it impossible for any anonymous trusted exchange to exist for a long time.

And, if it's a large amount, I suggest partial exchanges. You never know...


Definitely! I need this money obviously. It's an important amount for me, it's not trivial. And they have stolen it from me, without even responding to my emails.

Being completely anonymous makes selective scamming very easy for exchangers: nobody's going to do anything about it.

I know, I don't count on it anymore. It's pathetic that I lost it this way, but it's my fault, for not being careful.

Relative to the thread, I 've already said it, but I am currently too tired trying to prove I am not elephant. To this extent, I don't care if anyone thinks my coins dirty or not, especially if this "anyone" is a pathetic exchange that follows stupid patterns and applies scamming strategies.

You are quite polite in using the word "unethical" to describe such behavior and the situation in general. This is theft, pure and simple, and I'm very sorry to hear it.


That's 99% accurate, we've all seen that happening. However, we knew that this moment would come, even if it's against the fundamental principles of our beloved BTC. And it's more than sad, at least as I see it.


Unfortunately, this is the sad and bitter truth. As long as Governments and their authorities want everyone to be monitored and controlled in every single action they take, anonymity is out of the picture.

Yes and unfortunately being polite isn't always good, at least not in situations like this.


The way I see it, it can go in one of the two following directions:
a. The company will try to be lawful and do everything according to the legislation, so the authorities will eventually force them to do all this crazy shit.
b. The company will cease to exist, like eXch did. I could also use the silkroad example, but let's not have this conversation about silkroad because it was a very ambiguous situation.

If Bitcoin adopted Monero's privacy tech, CEXs would struggle to track transactions for AML. They might tighten KYC, limit BTC use, or push new regulations, but tracing would be nearly impossible.

It isn't only you who sees it like this, count me in as well. As of now, running an exchanger without KYC and regulations applied will eventually lead you either to cease your operation completely or comply with their rules and stay up and running. The case of Silk Road is a bit different, at least from my point of view, since it was a market where anyone could sell illegal things and services, while eXch wasn't. They just don't like this anonymity, and everywhere they can find it running well and honestly, they want to take it down by any means necessary. They will even invent "reasons" for this purpose, as they already do.
The thing is, what can we do to prevent this from happening? Nothing, you will say, and it's most likely the correct one.😢🤬

The authorities are too powerfull because they have control over the people.
But people are more powerfull because they have the legal right to elect the authorities.
Bitcoin is a great tool because it removes financial power from the authorities and gives it to the masses.
But, unfortunately, in this match, the authorities have always been winning...

Anyway, this is going out of subject, so let's focus on the initial question.

Exactly this is what is important because at some point one will need to prove the account validity and coins direction,some of them don't accept coins from gambling sites and other High privacy enhanced wallets, this have been the issue with centralized exchange and you are right on the fact that having a provable source of funds is highly important and as a matter of fact we should try as much as possible not to accept Bitcoin from sources that are outlined in the exchange terms and conditions.

The initial question has already been answered. We can't do a thing, at least for now. The only way is to trust the one who will send you the coins or/and from where. Since the coins are coming from a KYC-regulated exchange, then are "clear". However, if someone wants "virgin" coins will have to start mining. With all these terms of pure crap, we can't avoid their story and their strategy of controlling everyone.