Mixing your Bitcoin might become illegal in the future

[yazher]

I think it will have some adjustment in the future not totally illegal because we need to hide our identity with the help of those mixers. We can't just normally send any huge amount of transactions without using any of those mixers. we will be hunted by those who want to steal our money. In some cases, mixers are much helpful because you become anonymous at some point. You are not just letting others track you freely. I'm sure they won't make any hasty decisions like that, as I said, there are good things about using BTC mixers as well.

[DoublerHunter]

I think it will have some adjustment in the future not totally illegal because we need to hide our identity with the help with those mixers. We can't just normally send any huge amount of transaction without using any of those mixers. we will be hunted by those who want to steal our money. In some cases, mixers are much helpful because you become anonymous at some point. You are not just letting others track you freely. I'm sure they won't make any hasty decision like that, as I said, there are good things in using BTC mixers as well.

^ We want all to become anonymous in crypto, of course for us to have a safety for all cost while holding our crypto asset that will probably scammers will take advantage and the only way that we can hide is using mixer service. But how about if this is frequently used by those scammers too?  To clean up their mess and to have a clean coin leaving without a track to the authorities. Since KYC now is very common, I think in the future, even how we can mix our coin but it always ends up caught by the authority if you have done something stupid.

[2double0]

Mixers are purposefully being represented as a loophole to get away by doing fraudulent activities and not being caught. But mixers are not responsible for that as they do their work and some of them don't even charge. Mixers may shut down but it is not justice to the users who use it because it is the intention that makes the transaction look suspicious or not, and mixers are so good that they don't even keep track of where the coins are going. If governments will shut down mixers, I think they should go for darknet coins like xmr and dash first.

[ethereumhunter]

Do you think there's a possibility this will happen in the future? If not, why? What do you think will happen once mixers (both custodial and non-custodial) are banned by the government? Will this force people to use privacy coins more thoroughly? Or will everything remain the same? Any input will be greatly appreciated. Thanks in advance

It already happens since the mixer is available and continues to happen in the future, even if the government is trying to interfere or surveilling their citizens for suspicious activity. If that is about money launder, the criminals will find a way out how they can get and use the money without the government knows. The criminals can use the Darkweb to make a transaction, including money laundering or other illegal things because they do not want the government to track them.

But for most people, they will not have a problem seeing that thing and they think that is normal if their government wants to know their activity when they use crypto.

I'm sure Criminals will find a way to be able to carry out illegal activities, even though in the future mixers will be banned by the government.
One of them can be through Darkweb, actually the number of criminals who commit crimes using a mixer is very small in my opinion. Since
many criminals prefer to use fiat to carry out criminal transactions, it may be because it is easier to use fiat than crypto. So it is not certain
that mixing Bitcoin will become illegal or not in the future, depending on the number of crimes that have occurred in the crypto world.
If the percentage continues to increase, criminals use mixers to commit crimes, there is a possibility that mixers will be banned by the government.

That is for sure because the criminals also update their ways with the latest ways to do the crime without the government still can track or detect their activities. The Darkweb will still be their way to transact with the others because that is like an untouchable way for them and the safest way to make illegal things without the government knows. We can say that the criminals who commit crimes are not many but we do not know the truth because I think the biggest criminals will not show themselves easily and only a few people or criminals will know who they are.

The existence of bitcoin already takes their attention and they also see the benefits of using the crypto for their activities, so I think they like to use the crypto to transact. But we do not know the right number of criminals who use the mixers for their activities.

[yhiaali3]

It is difficult to know the people who use bitcoin mixers in order to maintain privacy and those who use the mixer to launder money and support terrorism, mixers are under the eyes of governments because they carry this charge in particular, so some good mixers present a document to customers proving that they have mixed Bitcoin and thus they have obtained According to a legal document, they do not use Bitcoin to launder money.
I do not know if governments accept this type of document, but it seems a good solution from my point of view to maintain privacy on the one hand and avoid accusations of money laundering on the other hand.

[Dread Pirate Roberts]

Then make cash illegal too. 

agree casino also could be possible for mixing coins . which their will send withdrawal request in many address. but its not specific for money laundry unlike mixing coin services . and might be possible somedays casino wallet will using the same address to sending withdrawal request for their

[Yey09]

We will see more strict regulation with every year

[Ridwan Fauzi]

I guess, it's not easy to prohibit the utilization over the internet network, in this case crypto currency. Although many countries ban bitcoin like has happened a few years ago but, who is really capable of that? I guess there is no single country who is able to really ban the utilization if bitcoin or crypto currency as a whole.

This is will happen to bitcoin mixer as well, although all country ban this service but I doubt it will run perfectly. There will be a way that can access the bitcoin mixer platform so as there will be many bitcoin user who will use the platform easily. As for bitcoin is being used as money loundering, I guess it is just FUD.

[Leviathan.007]

Mixing bitcoin for protecting your privacy is totally fine because you just want to don't let anyone to easily trace your transactions to possibility find your real identify. Actually, in my own idea, that's the whole point of bitcoin to protect your privacy. Obviously, some people will abuse it and do money laundry or use this feature for illegal deals such as gun or drugs. That's why the governments and the related organizations will try to make mixing illegal. For example, In my country, some local exchanges can not accept the mixed bitcoins.

[lionheart78]

I doubt that governments are interested in regulating what people do with their coins,

Don't doubt.  The government wants full control especially the financial flow of its citizen.  They also wanted to exploit the power of AML to milk individuals of their money.  If the government is not interested then why they implement AML?

because it's unrealistic to enforce it, but they can tell exchanges and other services that accept crypto to refuse accepting mixed coins, or demand users to show their inputs before mixing. Or maybe they won't even have to, because exchanges already do chainanalysis and some even ban their users from using CoinJoin.

They can enforce it on their jurisdiction, but definitely not on the whole world.  Same thing India and other unfriendly countries that imposed ban on Bitcoin, what more on the mixing service that can be controlled since they are a third party company that have an owner and a base of operation.

[bryant.coleman]

We will see more strict regulation with every year

How they are going to regulate the Mixers? Developers can easily build a mixing site in the TOR and there is hardly anything that the FBI or the IRS can do about it. And if somehow they seize the domain and shut it down, the promoters behind the mixer will simply set up another domain offering the same service. "Strict" regulations have their own limits, especially when it comes to cryptocurrency. Once in a while, they may have some success (such as the seizure of BTC-e in 2017), but right now cryptocurrency sector has grown too big for them to enforce their control.

[target]

We will see more strict regulation with every year

How they are going to regulate the Mixers? Developers can easily build a mixing site in the TOR and there is hardly anything that the FBI or the IRS can do about it. And if somehow they seize the domain and shut it down, the promoters behind the mixer will simply set up another domain offering the same service. "Strict" regulations have their own limits, especially when it comes to cryptocurrency. Once in a while, they may have some success (such as the seizure of BTC-e in 2017), but right now cryptocurrency sector has grown too big for them to enforce their control.

They can't regulate it, mixers can be created by a simple script just installed in the server and it could work already. If they ever put down the website, another will be created. Its a wild goose chase. But government can create pose a mixer of their own to watch criminals.

The rumors I've read were that its the mining that is going to be regulated. Coins mined in US, can circulate in US, and coins from Iran can circulate in Iran. That's is what Kevin Olery said which virgin coins will be regulated.

[Ararbermas]

We cannot stop them if they want bitcoin to become illegal because indeed ever since before they trying to stop the suspicious activity of some enthusiast who use bitcoin in any illegal transaction because of being so untraceable.. For what i know its already banned in some countries because of that reason... So we cannot blame them since this things is really can cause something bad that's why governments is against on it wherein even before.

[Woodie]

The recent popularity of Bitcoin has brought the attention of governments and central banks worldwide. We've seen certain opposition from countries like India, China, and Russia against the pioneer cryptocurrency. Countries that are friendly towards Bitcoin (like the US and UK), are constantly surveilling its citizens for any suspicious activity. I've seen that some countries have taken action against Bitcoin mixing services with the excuse that they're used for money laundering and terrorist financing.

Money laundering or terrorist financing wasn't started with crypto nor will it end with fiat. And for the record these illegal activities should involve huge sums of money which means exchanges wouldn't be their preferred choice as these could subject them to KYC and AML and a money trail.

Since most (if not all) of these centralized mixers don't comply with KYC/AML regulations, they're subject to being shut down by the government. Imagine if criminals begin using Bitcoin mixers in mass for money laundering purposes. If the trend continues, mixing Bitcoin may turn out to become illegal.

Are mixers some sort of registered company, I don't think so which is why I do see any line to separate these by legality.

Do you think there's a possibility this will happen in the future? If not, why? What do you think will happen once mixers (both custodial and non-custodial) are banned by the government? Will this force people to use privacy coins more thoroughly? Or will everything remain the same? Any input will be greatly appreciated. Thanks in advance

Anyone that needs privacy at its highest level should consider privacy coins and a combination of mixers and btw these banners of mixers won't happen.

[bryant.coleman]

They can't regulate it, mixers can be created by a simple script just installed in the server and it could work already. If they ever put down the website, another will be created. Its a wild goose chase. But government can create pose a mixer of their own to watch criminals.

The rumors I've read were that its the mining that is going to be regulated. Coins mined in US, can circulate in US, and coins from Iran can circulate in Iran. That's is what Kevin Olery said which virgin coins will be regulated.

The last part is also not very practical. The miners are not answerable to the American authorities, especially since >95% of the coins are mined outside the US. Anyone can purchase the fresh coins from miners in China or Iran, or even Venezuela, and use them to fund the mixers. How the Americans are going to prevent this? And how many of the mining pools have KYC activated? Even if KYC is mandatory, will the mining pools in China be willing to give that information to the IRS?

[kryptqnick]

I doubt that governments are interested in regulating what people do with their coins, because it's unrealistic to enforce it, but they can tell exchanges and other services that accept crypto to refuse accepting mixed coins, or demand users to show their inputs before mixing. Or maybe they won't even have to, because exchanges already do chainanalysis and some even ban their users from using CoinJoin.

Well, governments can enforce the bans on mixers by literally making it illegal for such companies to exist and prosecuting anyone who offers such services. Surely, some companies would still exist and have their customers under such circumstances, but many people will feel discouraged to use something if it's explicitly illegal rather than in the gray area, so introducing such a ban could accomplish some goals. I personally wouldn't care much because I've never used a Bitcoin mixer, but I'm not sure if it's something that should be illegal. I mean, companies do it all the time when they want to hide something, and while offshore schemes are frowned upon (when a company is a part of a company which is in turn owned by a bunch of other companies), they don't seem to be illegal.

[dezoel]

Well, from what I have seen so far, nobody is ready to make use of privacy coins; people’s choice of coin when it comes to daily transactions has been Bitcoin, then followed by coins like Ethereum and Tron, which are not privacy coins, unless things are going to change now that Bitcoin has a higher fees.

Then I’d like to add that I haven’t seen the need for making use of coin mixers, I do understand that there are lots of people who take their privacy seriously, but most of them are doing shady business and so they are trying to cover up their sources of income so that no one finds out. Most people really don’t care about the privacy thing, they just like cryptocurrency and since it makes transactions easy and fast, so they make use of it.

[hatshepsut93]

Well, governments can enforce the bans on mixers by literally making it illegal for such companies to exist and prosecuting anyone who offers such services. Surely, some companies would still exist and have their customers under such circumstances, but many people will feel discouraged to use something if it's explicitly illegal rather than in the gray area, so introducing such a ban could accomplish some goals. I personally wouldn't care much because I've never used a Bitcoin mixer, but I'm not sure if it's something that should be illegal. I mean, companies do it all the time when they want to hide something, and while offshore schemes are frowned upon (when a company is a part of a company which is in turn owned by a bunch of other companies), they don't seem to be illegal.

Mixers are not companies, they are online services that operate without any registrations and don't pay taxes. They wouldn't care much if they were outlawed, they are already hiding from the government, because government would like them to snitch on their users.

[Gamerholic]

The more governments poke their noses into this topic and try to regulate it with strict restrictive measures, the stronger the demand for anonymous coins that cannot be tracked at all will be. This is logical and I think that this will not happen. Smart people first thoroughly study the issue before making any decisions, especially at such a high level. On the other hand, time passes and while someone is thinking, who else is acting at this time. I do not know how it will be, but I think that governments should act carefully and gently.

[Ryker1]

Well, governments can enforce the bans on mixers by literally making it illegal for such companies to exist and prosecuting anyone who offers such services. Surely, some companies would still exist and have their customers under such circumstances, but many people will feel discouraged to use something if it's explicitly illegal rather than in the gray area, so introducing such a ban could accomplish some goals. I personally wouldn't care much because I've never used a Bitcoin mixer, but I'm not sure if it's something that should be illegal. I mean, companies do it all the time when they want to hide something, and while offshore schemes are frowned upon (when a company is a part of a company which is in turn owned by a bunch of other companies), they don't seem to be illegal.

Mixers are not companies, they are online services that operate without any registrations and don't pay taxes. They wouldn't care much if they were outlawed, they are already hiding from the government, because government would like them to snitch on their users.

Well, perhaps that is the reason why there are still mixing services that exist even though some countries are still fighting how to regulate bitcoin by their government which the fact they can't even control it. At some point, the bitcoin mixer service can be used for a good purpose not only in a bad but sometimes due to its feature that can boost your anonymity, this service has been used too in illegal activity. In fact, an illegal activity not only in crypto but also in using fiat.