EU to create database linking ID to cryptowallets

[fred21]

You don't always buy BTC on exchange service.

When somebody sells bitcoin to someone or buy goods or services to someone, then There is no exchange involve if this is done from paper wallets to paper wallets.

Authorities can start investigating from what exchange the BTC were bought from but can they say that all the wallets in which the BTC transited are owned by the original BTC user on the exchange?

[franky1]

You don't always buy BTC on exchange service.

When somebody sells bitcoin to someone or buy goods or services to someone, then There is no exchange involve if this is done from paper wallets to paper wallets.

Authorities can start investigating from what exchange the BTC were bought from but can they say that all the wallets in which the BTC transited are owned by the original BTC user on the exchange?

if you buy bitcoin with euros and withdraw to address A
you move a->b
you move b->c
you move c->d
you move d->e

you can say that B was you buying something and B is a totally different person. meaning C, D and E should be left alone and not looked into.
meaning you think your safe at point C->

but if they see E was later linked to you depositing funds into an exchange or you bought something privately that linked to your home address. then all of a sudden A,B,C,D,E are all linked to you and any movements of any funds in the future related any way to ABCDE has some relation to you.

this is why people say only use an address once
for example
dont continually use C and D thinking only A and E are linked to your real life info

you move a->b
you move b->c
you move c->d     x->d  d->f
you move d->e

not only would they consider F is now linked to you too, they would also wonder who X was and why X paid you, and then check backwards at where X got their funds to pay you

[mobnepal]

Is this simply possible to make?

It will be possible if those bitcoin user post his bitcoin address himself anywhere online. Also bitcoin transaction can be traced back and linked to email of the user or few more info of that user with the help of third party bitcoin payment processors or web wallet.

So if anyone take proper precaution while using bitcoin wallets and use tumblers/mixers in middle of transactions than even FBI can't find out personal details with only the help of cryptowallets/addresses.

[kumax]

It will be possible if those bitcoin user post his bitcoin address himself anywhere online. Also bitcoin transaction can be traced back and linked to email of the user or few more info of that user with the help of third party bitcoin payment processors or web wallet.

So if anyone take proper precaution while using bitcoin wallets and use tumblers/mixers in middle of transactions than even FBI can't find out personal details with only the help of cryptowallets/addresses.

Not leaving any trace is very hard in virtual world.. not impossible, but VERY hard indeed.
Almost every exchange service wants your personal details, some of them "only" name, phone and address, some of them they want even a pic of you with your ID.
Every web wallet is connected with your mail, or when you buy something for coins you also need to leave your name and address somewhere..
So it means it is really hard to stay anonymous if you are somehow active in a crypto currency world. 

[Xester]

In my country what the government does is to  require all bitcoin escrow sites in our country to require users to validate their accounts using their government ID. If you have a verified documents you can convert your bitcoins into local currency but those who havent cannot purchase or sell bitcoin. This has increased security from fraud and scammers but not to hackers.

[coolcoinz]

but if they see E was later linked to you depositing funds into an exchange or you bought something privately that linked to your home address. then all of a sudden A,B,C,D,E are all linked to you and any movements of any funds in the future related any way to ABCDE has some relation to you.

As far as I know, online stores don't report their buyer's home addresses, so if you buy something privately no government agency is notified.
Sending funds from address a to c through b can be easily traced, but mixing funds can't. More demand = more supply. If they start invigilating users there will be more cheaper and safer mixers to choose from.

[error08]

Is this simply possible to make?

Yes it is, and correct me if I'm wrong coinbase already did this.

How can EU collect all those information. This simply seems impossible to put into action.

Simple, if some big companies or exchanging sites will have a deal or working together with EU regarding to this then they can have personal information gave by users of particular exchange.

What do you think?

This will be good to government side to monitor and to determine those who do illegal doings with bitcoin, and to take tax for this. But for those people who have privacy issues then its very difficult to them.

Definitely, it can be happen if all of exchanges cooperate with EU to prevent bitcoin abuse.
but it's impossible to identify every users of bitcoin as there are a lot of options to generate a new wallet.
Just simply as that to prevent terrorist financing in EU without interfere id privacy.

[manselr]

Are you kidding?  FBI has been doing it for a long time now.  Very easy to do.  Very hard to undo.

All they can do is to try to link wallets created within exchanges to real people. Other than that, how are they ever going to know what some random address contains? it's not possible. They would need to get the address that is directly attached to a real person, and they can only do this by asking exchanges, and some people use VPN/TOR and don't give personal data (don't use fiat). Then it still remains impossible to trace them.

[eternalgloom]

Are you kidding?  FBI has been doing it for a long time now.  Very easy to do.  Very hard to undo.

All they can do is to try to link wallets created within exchanges to real people. Other than that, how are they ever going to know what some random address contains? it's not possible. They would need to get the address that is directly attached to a real person, and they can only do this by asking exchanges, and some people use VPN/TOR and don't give personal data (don't use fiat). Then it still remains impossible to trace them.

That's actually what it's all about (linking exchange wallets with users), the rest is just FUD.

But I wouldn't say that it isn't possible to link random addresses with real people, could be achieved by doing blockchain analysis and there are already a few companies that specialize in this.

[darkangel11]

Are you kidding?  FBI has been doing it for a long time now.  Very easy to do.  Very hard to undo.

All they can do is to try to link wallets created within exchanges to real people. Other than that, how are they ever going to know what some random address contains? it's not possible. They would need to get the address that is directly attached to a real person, and they can only do this by asking exchanges, and some people use VPN/TOR and don't give personal data (don't use fiat). Then it still remains impossible to trace them.

That's actually what it's all about (linking exchange wallets with users), the rest is just FUD.

But I wouldn't say that it isn't possible to link random addresses with real people, could be achieved by doing blockchain analysis and there are already a few companies that specialize in this.

You can do it only to some extent. For instance you see money being moved from 1 address to another. What proof do you have that both are owned by the same person? Also circumstantial evidence like that can't be used in a court case. Blockchain analysis can only show where the money went, but can't link a user's ID, until that user himself provides this ID to an exchange or a store where he spends the money.

[Velkro]

Are you kidding?  FBI has been doing it for a long time now.  Very easy to do.  Very hard to undo.

Well if this will be official info that EU is doing this (now u can only guess about fbi), tumblers will grow in power and usage will skyrocket. Noone want to everyone know his whole wealth or when or what he is doing with his money.
So in future anonimity for bitcoin will be easier.

[20kevin20]

Coinbase does that. I tried to make an account there and it requests your legal name. I regret the fact that I actually wrote that data in, but I'm not going to use that account anyways. I'm scared to put a fake name too, because who knows how your account can end up being locked or banned or whatever.. I think Coinbase should be good for corporations because they need to show governments their earnings, but not for those like me wanting some privacy.. this is what I'm trying to achieve by using Bitcoin after all.

[Tanic]

Are you kidding?  FBI has been doing it for a long time now.  Very easy to do.  Very hard to undo.

Yes that's right. We just think that we are free, but we are under invisible control all the time.

[fred21]

If you create wallets using TOR and use it with TOR and If you trade BTC without giving your personal information, then there is simply no way to get to you.

[calkob]

i look at this as a positive, if they are putting these things in place thats because they know it is going to go main stream....   but the problem for them will be when some genius comes up with a way for any bitcoin user to tumble their coins easily........ by then its to late.... bring it on

[fikihafana]

https://coinidol.com/eu-planning-a-database-to-link-user-ids-to-cryptocurrency-wallets/

Is this simply possible to make?

I know that anybody can create his own wallet with his own application on desktop. How can EU collect all those information. This simply seems impossible to put into action.

What do you think?

It's possible to do that. and some company/organization has been done with it

[fred21]

https://coinidol.com/eu-planning-a-database-to-link-user-ids-to-cryptocurrency-wallets/

Is this simply possible to make?

I know that anybody can create his own wallet with his own application on desktop. How can EU collect all those information. This simply seems impossible to put into action.

What do you think?

It's possible to do that. and some company/organization has been done with it

I meant : is it possible to do this with every single wallet in circulation?

The response is clear and this is NO.

If you disagree, state your reasons...