How can a goverment trace you have BTC?

[beyasuli]

Although bitcoin transactions are anonymous, at present almost every exchange market requires us to verify the identity we have so that the bitcoin we have can be converted to the local currency we use. therefore the government can easily track us via ip and find out our identity

Bitcoin transactions are anonymous, so it's safe. But when bitcoin wants to be converted into fiat money, an identity is needed for administration. This is where the government can implement policies such as collecting taxes. So the bitcoin transaction itself won't be tracked by the government as long as you don't cash into fiat currency.

[fonRonsenburg]

When using bitcoin, no one can know your identity. But you shouldn't disclose identity and trade bitcoin exchanges with strangers.

[Agriasoaks]

You shouldn't trade and sell coins by disclosing personal information. The government won't be able to find you anywhere.

[trauchot]

Yes, it is easy to do this, for example, through your Internet provider to track what you are doing and everything on this, everything depends on whether they want to do something or not, I had the same problem with my friend, he just made money on cryptocurrency and in one day government called him and said that we saw your inquiries about the cryptocurrency and so on, he turned away somehow, now they dont call him, so that anyone can calculate anyone, everything depends on whether it is forbidden in your country to work with cryptocurrency or not.

[Viperziper]

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 guess you're safe and sound until and unless you let them know your identity. I know in some countries you can change BTC to fiat outside an exchange through a trusted person in person (offline) and then your identity is only known to that trusted person

[kzozenberg]

I think that you can track only if we went KYC and registered your wallet in a public place but if you do not provide your data and use the exchange without verification you will not notice.

[Joannafarrell]

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 of course address could be unlimited.

[paulo013]

I think it can be traceable by your internet service provider and government can do track your browsing history. Also if you have signup in a exchange site with your real identity or to buy bitcoin with your credit card you are easily to get caught with this.

[percent]

As other commenters have said, if you can be associated with an address (btc address) you can be associated with any transactions to that address.

[Babyrica0226]

From what I understand, the government will be able to trace the transaction with BTC that you made when you cashout it on a payment processing establishment/company in your country. 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 to link your name to any BTC transaction.

This one I agreed so much, we cannot trace by the government as long as your not giving any KYC. But once you convert your bitcoin and transfer it in the exchange where it is registered under by SEC for sure there is a possibility to track if you have Bitcoin balance thru getting your KYC just simple as that.

[Rune]

It's easy to trace Bitcoins considering the entire thing works on the completely open and visible Blockchain lol
It is what bitcoin does it is probably the easiest way to track moving currency

[Ramonranger]

I dont believe that government will give importance in tracing someone using BITCOIN. Why? using BITCOIN is not actually required your complete identity which is requiring your BIRTH CERTIFICATE so you can register using dummy names, the important in having bitcoin wallet is when you buying using your fiat currency to Bitcoin digital currency  so government have not interested in it. The goverment only focus on their economy to improve and protect it from any unregulated currency which cryptocurrecy is also present, the bitcoin is highly used  for future improvement in dealing with money. Newly advance technology evolving in our generation today is the ICO'S.

[jakezyrus]

I dont believe that government will give importance in tracing someone using BITCOIN. Why? using BITCOIN is not actually required your complete identity which is requiring your BIRTH CERTIFICATE so you can register using dummy names, the important in having bitcoin wallet is when you buying using your fiat currency to Bitcoin digital currency  so government have not interested in it. The goverment only focus on their economy to improve and protect it from any unregulated currency which cryptocurrecy is also present, the bitcoin is highly used  for future improvement in dealing with money. Newly advance technology evolving in our generation today is the ICO'S.

Maybe the op is trying to say , how can someone trace us if we do any illegal acts that is against the law like scamming , hacking , money laundering , etc ... 

It is also possible to trace bitcoin users becausw bitcoin isnt fully anonymous not unlike to any privacy coins like monero . 

Now if someone is getting help from a government just to caught the theives , they can possibly link your btc address to other addresses connected thru it .  but chances are they will only get dummy accounts and not the real one . so it is still nonsense.

[Ramir]

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 soon as your money turns into a fiat, your card will become an electronic trace, which will be tied to the bitcoin wallet. Then you are deprived of your anonymity

[Ramir]

I dont believe that government will give importance in tracing someone using BITCOIN. Why? using BITCOIN is not actually required your complete identity which is requiring your BIRTH CERTIFICATE so you can register using dummy names, the important in having bitcoin wallet is when you buying using your fiat currency to Bitcoin digital currency  so government have not interested in it. The goverment only focus on their economy to improve and protect it from any unregulated currency which cryptocurrecy is also present, the bitcoin is highly used  for future improvement in dealing with money. Newly advance technology evolving in our generation today is the ICO'S.

Maybe the op is trying to say , how can someone trace us if we do any illegal acts that is against the law like scamming , hacking , money laundering , etc ... 

It is also possible to trace bitcoin users becausw bitcoin isnt fully anonymous not unlike to any privacy coins like monero . 

Now if someone is getting help from a government just to caught the theives , they can possibly link your btc address to other addresses connected thru it .  but chances are they will only get dummy accounts and not the real one . so it is still nonsense.

To do this, you need to use many addresses, scattering through them the entire volume of the crypto currency.

[cuongskymtpcute]

It's easy to trace Bitcoins considering the entire thing works on the completely open and visible Blockchain. You shouldn't trade and sell coins by disclosing personal information.It is what bitcoin does it is probably the easiest way to track moving currency 

[Ramir]

I dont believe that government will give importance in tracing someone using BITCOIN. Why? using BITCOIN is not actually required your complete identity which is requiring your BIRTH CERTIFICATE so you can register using dummy names, the important in having bitcoin wallet is when you buying using your fiat currency to Bitcoin digital currency  so government have not interested in it. The goverment only focus on their economy to improve and protect it from any unregulated currency which cryptocurrecy is also present, the bitcoin is highly used  for future improvement in dealing with money. Newly advance technology evolving in our generation today is the ICO'S.

As soon as you begin to keep most of your savings in the Crypto currency and operate them for trading, earning large sums from this, from which the government will not get anything - they will immediately be interested in ways to track you)

[eann014]

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?

Just don't tell anybody that you are using bitcoin and you owned it so that you are only the one who will know that you are having it, or maybe tell it to some of your family that you can trust. I think the government can't discover or know who is having bitcoin to their country.

[Ramir]

It's easy to trace Bitcoins considering the entire thing works on the completely open and visible Blockchain. You shouldn't trade and sell coins by disclosing personal information.It is what bitcoin does it is probably the easiest way to track moving currency 

Correctly. Anonymous can remain only as long as the transactions occur within the network). After the withdrawal to Fiat, we become open.

[Ramir]

It's easy to trace Bitcoins considering the entire thing works on the completely open and visible Blockchain lol
It is what bitcoin does it is probably the easiest way to track moving currency

But transactions are tracked, not the identity of the owners. In addition to looking at the transaction, you do not define a country, a city.