How can a goverment trace you have BTC?

[MommyElsa]

How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?

Right now,  there are ico that requires us to submit a KYC maybe it can help to trace who uses btc but it will be very difficult to get those information one by one because a lot of users come from different parts of the world. And it is just a waste of time.

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[neya]

As what i know.owner of bitcoin cant trace with the government unless you join some icos which need to do kyc.here in hour country we have coins.ph that we can use to trade so its easy to trce i think because we do kyc and put details  coins.ph

[Balayashi]

How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?

Well, there are some ways they can trace it to 2. If you just use crypto and never trade it for fiat and always use a laptop on proxy or something like that, it can be very hard to trace to you, unless by some reason and by distraction you end up posting you're wallet in a forum etc.
If you use mobile wallet it can be possible to trace since nowdays for almost anything in wallet you need to associate you gmail acc etc.
If you change crypto for fiat you need to be carefull as they can trace it back 2 you too. Specially if you end up moving the money to the bank.

[Mariadelan25]

As long as you not show your identity  then probably it's hard to find you.We all know Bitcoin is a decentralized crypto currency an anonymous thats not control by the government.So, theres a possible govenrnment cannot trace all of us Bitcoin users.

[Asimmo]

In most cases, confidentiality becomes optional in crypto..
So it depends totally on you, whether you will be traced or not..

But, why and how government will contact this/that exchange and request information?
Do we have such precedent already? Have you heard?

[Nanashev]

How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?

It would not be easy for the government to detect citizens with cryptocurrencies unless you reveal your identity by means of your transactions into your bank or paypal account. Nobody can have access to or know your wallet detail since everything is written in codes and not your name.

[jhonvir666]

Everyone with mobile wallet now has the requirements to really identify its owners. and it depends on the wallets that exist in different countries like our country in the philippines where there are so-called coins ph.wallet we can find that when someone uses this wallet means that it's working An online job that includes a popular online currency is bitcoin. Maybe in this way, they can track who really has a bitcoin. but a bitcoin is in great way to earn, sometimes we use bitcoins in a way that is illegal in government so sometimes it is violated by law and is even more known to governments because of the people who are working against bitcoin if trivia bitcoin helps those who need extra income in our economy and hopefully they will not use it for law violations because bitcoin is a cryptocurrency that is good for the whole world. and for now many transactions are related to a bitcoin. but it's easy because bitcoin is open to all countries and we can see the government news.

[BennyK]

Bitcoin holders are strictly anonymous unless the holder gives out his identity, you cannot tell an individual owning  particular Bitcoin wallet. In countries where Bitcoin is strictly illegal, governments can only track a transaction Hash to a particular location but not a particular user.

[Blackwhite69]

I think the only way to trace is your bitcoin address. Frpm bitcoin address to a bank where you withdraw with your money. Because the transaction will be record on where did you deposit your money

Yeah, I very much agree. The only way the government can possibly detect your use of Bitcoin is via the transaction and exit strategy you use.. For example, if you withdraw money from your wallet into your bank account/paypal this would be traceable.

It becomes an easy way to track someone in their country from the withdrawals they make with the earnings of Bitcoin.

[target]

I think the only way to trace is your bitcoin address. Frpm bitcoin address to a bank where you withdraw with your money. Because the transaction will be record on where did you deposit your money

Yeah, I very much agree. The only way the government can possibly detect your use of Bitcoin is via the transaction and exit strategy you use.. For example, if you withdraw money from your wallet into your bank account/paypal this would be traceable.

It becomes an easy way to track someone in their country from the withdrawals they make with the earnings of Bitcoin.

They will have to learn where the BTC comes from so banks would have to trace back and that it should lead them to the known sourced from their database. If the banks can't recognize where your coins are from, they will hold it for further questioning.

Its probably convenient for them to just allow cashouts from BTC address directly related to exchanges that are connected to banks and these exchanges are the ones that will have records from used which is why they are already starting to collect data from us by KYC.

[iceblasto]

It's hard to know about your bitcoin as a traceable crypto transaction. there is no way that the government will be able to track certain people if he has Bitcoin. Unless you tell yourself to the crowd that you are a Bitcoin user. and governments in many countries are mostly against bitcoin, because it is much higher than the state currency

[LastKiss]

Bitcoin is anonymous for sure, but they can track you through your internet provider in my country the internet provider can see what kind of websites that opened by me also there's other way to track that you're bitcoin user. Any transactions from exchanger that provide bitcoin to FIAT will able to see that you had bitcoins, government can see it through there. 

[markk94]

In my country, there are local exchange that allow to turns your cryptocurrencies that you have become local fiat. Maybe with that, government could track where are your wealth come from, when it is from the local exchange like my country have, you could arrested. but, im not sure how when there's nothing like that local exchange that i've just mentioned.

[bluemoon84]

 Bitcoin is decentralize and there is no possible way to track down your transaction/info unless they were able to log in into your wallet. And that would be easy for the government, but if they do hack you, it's a breach of privacy.They'll be able to do that because most of these companies require you to provide KYC documents before letting you cashout your money from them. This will be the only thing that I can think of where they'll be able .

[Phinoy]

How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?

You should avoid reusing addresses. You should also be careful to use coin control: remember that signing transactions with outputs from multiple addresses associates all those addresses together.

You should always use IP address obfuscation when broadcasting transactions to the network. You can push raw transactions over TOR using a push service like https://blockchain.info/pushtx or you can connect to the network through a good VPN.

Bitcoin transactions are anonymous. As long as you don't reveal your identity, no one know you are a bitcoin holder.
For this purpose you have to buy bitcoin peer to peer from a person you trust. Never use exchanges that force you to verify your identity.

Bitcoin transactions are not anonymous. They are pseudonymous. Even if you never fully verify your identity with an exchange, things like IP addresses, cookies and PII like physical addresses (e.g. if you've bought an Amazon gift card with BTC and had something shipped to your home) can be used to identify you. Lots of PII gets leaked when dealing with third parties via web browser. And if blockchain analysis companies (working with governments) can identify one or two of your used addresses, clustering techniques may allow them to map much of your transaction history.

Be careful out there!

Government can trace you, if you have a transaction in bitcoin that's the way can trace you and also if you like there page even more if you have conversation to bitcoin.

[Giles Goodman]

You should never reuse an address
All transactions are public that's something you should know.
A transaction doesn't include any wallet identifier, that's just an organizational tool for you to manage your funds and not part of the network or public data.

[Gurjasmeet]

I think it's very simple to trace by the  government. because almost many people used Internet now a days .it's requirements of identity is must for mobile wallet.

[kukurikapu]

How can the government discover I own BTC, let's say I'm from Venezuela where crypto is banned, what they can do to discover and arrest me?

I think since it is decentralized, there is nothing to worry about as long as you are very cautious about your identity. But the problem is, we are now in internet age which can be used in any form just to track you.

[dutchkay]

From what i know bitcoin transactions are anonymous and there is know way you can be traced. The blockchain is a public network where all the tranactions go through and you can actually find any bitcoin address with all the transactions that have been made with it. Where it is now hard is placing a face on the address. I don't remember giving out your personal information when installing wallets. But on exchanges that requires KYC can be traced. So to be anonymous avoid sending any exchange to your personal private wallet because it will be linked to you. Aside that you are good.

[Jackolantern]

i think that it is really impossible,i think that btc is the one that has more confidentiality than any other coin ever. i m sure that the government will soon understand that btc is the best one forever and it deserves to be the best