How can a goverment trace you have BTC?

[HeatherRamsey]

If you buy bitcoin through fiat, then you can easily be tracked by govt. They can track you through your KYC made at the trading platform where you bought the bitcoin and then they can track the wallet you have deposited your bitcoin from the trading platform. It's not really difficult.

[DogmaF10]

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?

They wont, until they releases regulations to allowed them checking on local server you used to trade on bitcoin. Or if they check on your bank accounts and ask where did you get your money from? But i dont think they have any rules that allows them to do it.
But i think every country has their own IT team that can track it down, they just dont have the legal regulations yet

[Bitcoinislife09]

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?

Bitcoin is a decentralized system. It uses blockchain and so it won't be possible that the government will discover you as a user. Also, user's name is anonymous. It won't be easy for the government to track you down. Though, it might be possible if you transact in a system that needs your information or a payment or exchange through fiat, then they might locate you. Just be careful and simply keep it to yourself that you uses bitcoin.

[chocolato]

Until now I do not know how the government finds you or knows you if you have bitcoins.This is not easy and the Government can not track down the bitcoin owner because it can not be tracked and only the number of bitcoins can be seen.

[-Sinner-]

If you are smart, they can't.
BUT, if you registered on Coinbase with documents, name ecc.. or also in some exchangers with your ID, you could have problem if they want.. but the point is that btc would be anonymous if you want, but basically when a country say it is illegal, no one cares about it, trust me.. no one will search you

[yeniruieni]

It is very difficult to track down people who use Bitcoin or save Bitcoin. And in my country, the Government is not so concerned about Bitcoin. It's just that the Government is still banning people using Bitcoin payments to Transact directly.

[marcosfx]

If inside the country will be created some organisation that can track me for my transactions, they can know how much I have earned.  but not so many government's for your type can create these organisations. I think it is only one way to trace me.

[Philomena86]

They will be able to do that because most of these companies require you to provide KYC documents before allowing you to withdraw money from them. One of the good characteristics of Bitcoin is its hierarchy. The government does not have the means to track your use of the BTC unless you sign up for a foundation with KYC because to use that platform you will need to send an identification number and pass KYC.

[Crypto Deep]

Government can't never trace you how much bitcoin you have . But they can get your information from exchange site where you buy and your bitcoin . Otherwise no chance to trace for balance and information.

[okakaynam]

Government can't trace anyone who have bitcoin as long as you put your bitcoin in a secured electronic wallet without your identity. Bitcoin is a very anonymous and no one will track every transaction or who have bitcoin in their wallet. Thats the advantage of crypto currency specially if you have a lot of bitcoin or other altcoin that cost lots of value or money.

[TimesVeronica]

That is the advantage of electronic money especially if you have a lot of bitcoin or other altcoin that costs a lot of money or money. It uses blockchain and so it will not be possible that the government will discover you as a user. Just be careful and just keep it for yourself that you use bitcoin.

[Tranghoangvani]

That is the advantage of electronic money especially if you have a lot of bitcoin or other altcoin that costs a lot of money or money. It uses blockchain and so it will not be possible that the government will discover you as a user. Just be careful and just keep it for yourself that you use bitcoin.

[swabelang]

Well, government cant trace that you have BTC unless your account is not private and you show your identity, btc is anonymous. so, government didn't waste their time by tracing your btc because they have many things to do in their country as well. 

[Marjo04]

Government cant trace bitcoin users.but same here in our country we have wallet/exchanger that need to do kyc and put information about us.so maybe theres a possibility that they can trace us through that wallet.

[jelbert1351]

Yeah in the first place. I really can't fathom it how can they trace how much crypto do we have when bitcoins can be anonymous not unless you have the public address, but ofcourse address could be unlimited.

[trangprooss1]

I do not think they have any rules that allow them to do that. Bitcoin is a hierarchy. Also, the username is anonymous. Although, it might be possible if you traded in a system that needed your information or paid or exchanged through fiat, then they could locate you.

[Sydney Chapman]

A lot of people are spreading information that is wrong. The truth is though bitcoin addresses are anonymous, a few different companies exist that specialize in analyzing the blockchain and given enough time will figure out who owns what and where funds came from.

For example, lets say your friends signs up with coinbase and buys Bitcoin. He uses his Email address to sign-up, he then sends you Bitcoin, you then send Bitcoin to another registered user. Given enough of these types of transactions a company that specializes in block analysis could potentially figure out who you are and where the funds come from and where and who you have sent them too.

Though you might not be able to trace the person, there are companies that you can hire to do this and the government definitely can.

The only way to stay 100% anonymous is to use a privacy coin like Monero and an anonymous browser when logging into exchanges and paying for things with those privacy coins.

[James Fleming]

You cannot find this user’s identity. Let’s see how Bitcoin system works;

No one knows who holds a particular bitcoin address. It’s like having a clear plastic wallet with no visible owner. Everyone can look inside it, but no one knows whose it is. However, it’s worth pointing out that people who use bitcoin unwisely (such as always using the same bitcoin address, or combining coins from multiple addresses into a single address) risk making it easier to identify them online. You can have the same wallet but you can use a lot of addresses. Most digital wallets make a new bitcoin address for you every time you make a transaction. But if you use a public address (for example if you post your address on your e-shop) then it’s easy to find how many bitcoins are stored in this address. Not your wallet. So, practically, it’s very difficult to identify a bitcoin user nowadays.

[rickyNmorty]

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?

As far as i know, the government can know your identity if you put you name, or such other personal information in your wallet. It is safer to use anonymous if you are about to enter in it especially if your country bans it. But as a user you might consider asking the government what are there factors in banning bitcoin at the same time you can encourage them to let bitcoin enter to your country. Bitcoin is a huge help.

[elpape225]

OptiToken gonna open around $6 or $7 on C2CX