how to avoid buying blacklisted/dirty bitcoins

[bias]

Once more, I will quote Loyce, who explains it perfectly here:

I'm (up to some point) okay with centralized but well-known and regulated services (be it casinos or exchanges) that require KYC. I'm also okay with completely anonymous but trusted services that don't ask for any personal data.
Problems start when unregulated exchangers demand personal data after depositing, which many exchangers seem to do. We need more trusted exchangers, not less.

I don't disagree at all. However, if an exchanger wants to be regulated, then it must ask for KYC. It can't be regulated in any other way. Also, trust doesn't come because an exchanger is regulated. We will never know if and when an exchanger is fraudulent or blows up like a firecracker. That's the reason that we try not to have everything on them, it's not our wallet, and will never be.

[apogio]

I don't disagree at all. However, if an exchanger wants to be regulated, then it must ask for KYC. It can't be regulated in any other way. Also, trust doesn't come because an exchanger is regulated. We will never know if and when an exchanger is fraudulent or blows up like a firecracker. That's the reason that we try not to have everything on them, it's not our wallet, and will never be.

Yes, it's not about trusting them keeping your money, but more about trusting them offering the exchange service. In my case, I 've not asked the exchanger to hold my funds for me, I just asked them to do a swap. And, since they refused to do the swap, I asked them to return the funds back to me. But they haven't responded... That's unethical, isn't it?

[LoyceV]

if an exchanger wants to be regulated, then it must ask for KYC.

If they want to be regulated, they themselves shouldn't be anonymous and hiding in some tax haven. Regulated companies (and governments) leak enough data as it is, I'm not sending my personal documents to unknown actors.

It can't be regulated in any other way.

Many Bitcoin casinos and exchanges started this way: some guy creates something nice that gets out of hand, and suddenly they're earning a shitload of money they can't spend legally if they don't become regulated. Quite literally all the exchanges and casinos I first saw when I started in Bitcoin, went from completely anonymous to full KYC or they stopped existing.

Also, trust doesn't come because an exchanger is regulated. We will never know if and when an exchanger is fraudulent or blows up like a firecracker.

If it's registered in my own country I'd trust it a lot more than if it's somewhere I have no idea how the legal system works.

That's the reason that we try not to have everything on them, it's not our wallet, and will never be.

Agreed! Only send to exchanges what you want to exchange, and take it out as soon as possible.

since they refused to do the swap, I asked them to return the funds back to me. But they haven't responded... That's unethical, isn't it?

Some would call it theft.

It's a catch-22 for good, trusted anonymous exchangers: being good and trusted means they'll get bigger. And if they get bigger, they'll eventually become a target for authorities (or at least some of the many different authorities out there). That makes it impossible for any anonymous trusted exchange to exist for a long time.

[apogio]

Agreed! Only send to exchanges what you want to exchange, and take it out as soon as possible.

And, if it's a large amount, I suggest partial exchanges. You never know...

Some would call it theft.

Definitely! I need this money obviously. It's an important amount for me, it's not trivial. And they have stolen it from me, without even responding to my emails.

[LoyceV]

Definitely! I need this money obviously. It's an important amount for me, it's not trivial. And they have stolen it from me, without even responding to my emails.

Being completely anonymous makes selective scamming very easy for exchangers: nobody's going to do anything about it.

[apogio]

Being completely anonymous makes selective scamming very easy for exchangers: nobody's going to do anything about it.

I know, I don't count on it anymore. It's pathetic that I lost it this way, but it's my fault, for not being careful.

Relative to the thread, I 've already said it, but I am currently too tired trying to prove I am not elephant. To this extent, I don't care if anyone thinks my coins dirty or not, especially if this "anyone" is a pathetic exchange that follows stupid patterns and applies scamming strategies.

[bias]

Yes, it's not about trusting them keeping your money, but more about trusting them offering the exchange service. In my case, I 've not asked the exchanger to hold my funds for me, I just asked them to do a swap. And, since they refused to do the swap, I asked them to return the funds back to me. But they haven't responded... That's unethical, isn't it?

You are quite polite in using the word "unethical" to describe such behavior and the situation in general. This is theft, pure and simple, and I'm very sorry to hear it.

Many Bitcoin casinos and exchanges started this way: some guy creates something nice that gets out of hand, and suddenly they're earning a shitload of money they can't spend legally if they don't become regulated. Quite literally all the exchanges and casinos I first saw when I started in Bitcoin, went from completely anonymous to full KYC or they stopped existing.

That's 99% accurate, we've all seen that happening. However, we knew that this moment would come, even if it's against the fundamental principles of our beloved BTC. And it's more than sad, at least as I see it.

That makes it impossible for any anonymous trusted exchange to exist for a long time.

Unfortunately, this is the sad and bitter truth. As long as Governments and their authorities want everyone to be monitored and controlled in every single action they take, anonymity is out of the picture.

[apogio]

You are quite polite in using the word "unethical" to describe such behavior and the situation in general. This is theft, pure and simple, and I'm very sorry to hear it.

Yes and unfortunately being polite isn't always good, at least not in situations like this.

Unfortunately, this is the sad and bitter truth. As long as Governments and their authorities want everyone to be monitored and controlled in every single action they take, anonymity is out of the picture.

The way I see it, it can go in one of the two following directions:
a. The company will try to be lawful and do everything according to the legislation, so the authorities will eventually force them to do all this crazy shit.
b. The company will cease to exist, like eXch did. I could also use the silkroad example, but let's not have this conversation about silkroad because it was a very ambiguous situation.

[Skjadoon]

If Bitcoin adopted Monero's privacy tech, CEXs would struggle to track transactions for AML. They might tighten KYC, limit BTC use, or push new regulations, but tracing would be nearly impossible.

[bias]

The way I see it, it can go in one of the two following directions:
a. The company will try to be lawful and do everything according to the legislation, so the authorities will eventually force them to do all this crazy shit.
b. The company will cease to exist, like eXch did. I could also use the silkroad example, but let's not have this conversation about silkroad because it was a very ambiguous situation.

It isn't only you who sees it like this, count me in as well. As of now, running an exchanger without KYC and regulations applied will eventually lead you either to cease your operation completely or comply with their rules and stay up and running. The case of Silk Road is a bit different, at least from my point of view, since it was a market where anyone could sell illegal things and services, while eXch wasn't. They just don't like this anonymity, and everywhere they can find it running well and honestly, they want to take it down by any means necessary. They will even invent "reasons" for this purpose, as they already do.
The thing is, what can we do to prevent this from happening? Nothing, you will say, and it's most likely the correct one.😢🤬

[apogio]

The thing is, what can we do to prevent this from happening? Nothing, you will say, and it's most likely the correct one.😢🤬

The authorities are too powerfull because they have control over the people.
But people are more powerfull because they have the legal right to elect the authorities.
Bitcoin is a great tool because it removes financial power from the authorities and gives it to the masses.
But, unfortunately, in this match, the authorities have always been winning...

Anyway, this is going out of subject, so let's focus on the initial question.

[Odusko]

Just make sure you are doing something legit which is what that is important. There are many blacklisted and tainted coins is what the reality is. Some tainted coins even could go to exchanges.

There are some sites that have the listed of blacklisted coins but most traders is not what they look at or bothered about. Most bitcoin traders do not even know how to check for it. Just make sure you have proof of source of funds.

Exactly this is what is important because at some point one will need to prove the account validity and coins direction,some of them don't accept coins from gambling sites and other High privacy enhanced wallets, this have been the issue with centralized exchange and you are right on the fact that having a provable source of funds is highly important and as a matter of fact we should try as much as possible not to accept Bitcoin from sources that are outlined in the exchange terms and conditions.

[bias]

Anyway, this is going out of subject, so let's focus on the initial question.

The initial question has already been answered. We can't do a thing, at least for now. The only way is to trust the one who will send you the coins or/and from where. Since the coins are coming from a KYC-regulated exchange, then are "clear". However, if someone wants "virgin" coins will have to start mining. With all these terms of pure crap, we can't avoid their story and their strategy of controlling everyone.

[duke_otc]

Many of these tools are available as online platforms or even Telegram bots (e.g., @cryptoaml_bot, @AML_checking_getblocknet_bot), and they can check wallet addresses or specific transactions for a small fee

thanks i tryed it right now and it seems to be working i never bought dirty coins in my otc transactions apparently ,i got lucky cause  i never really checked but i will be more carefull now ,i would hate to put my customers in trouble .

id like to see what happens when you have tainted coins like from a small local hack/ wrench attack where the victim did a police report and everything else,  would the coins get flagged everytime or does it work only for major hacks, but for that i first have to find online a wallet linked to such things