Comment by XorNot
3 days ago
It is extremely simple to prove legitimate origin of funds though.
You're acting like the government will charge you for a $100 in your wallet.
3 days ago
It is extremely simple to prove legitimate origin of funds though.
You're acting like the government will charge you for a $100 in your wallet.
Any circumstance where the onus is on a private citizen to prove innocence instead of the government to prove guilt is a perversion of justice. Stupid voters and the government will destroy all privacy for the sake of "the guns, the gangs, the children"
It's extremely simple until it's not. Let's say you bought 100$ worth of BTC back in 2012 with cash at a meetup. Now it’s worth $1M, but you can't prove its origin. You now have a perfectly law-abiding person that risks being accused of "money laundering" just to keep what's rightfully theirs.
I've had this exact problem before, though not with such high amounts. To make it worse, it was Monero rather than Bitcoin, which made tracing impossible. In the end, I just had to produce emails/documents proving I was paid in crypto a couple years back & the associated increase in value since then. I got the crypto into my bank via a sketchy non-kyc exchange and somehow they didn't care about that at all.
Bitcoin literally has an immutable transaction record baked into it's model.
You would be able to point to the timestamp when you took possession of the wallet which would prove providence unambiguously.
There's no KYC to take possession of a wallet, how would you prove the wallet wasn't just traded to you (maybe even yesterday) instead of moving the bitcoins?
9 replies →
That works until it does not. What if you transferred the BTC to other wallets or exchanges in the meanwhile? Even if you still had access to the original wallet, what proves that it was really yours? etc.
17 replies →
Monero? Zano? (if you could actually see that monero actually hasn't been hacked as people say and it was all just a marketing gimick though I'd still be cautious and maybe keep my money in monero short term??)
That example doesn't work. The blockchain shows that you purchased it for $100! At absolute worst, you "laundered" $100. Likely the statutes don't even apply to numbers that low.
See my other replies for why that doesn't work.
1 reply →
No, some financial institutions like Binance only allows clients to get statements for the last year or so. P2P transaction details go back only a couple of months.
Sometimes your employer goes out of business. Employees do not always preserve their payslips.
Then there are countries like Georgia, it's culturally acceptable to buy real estate with cash. If no valuation of the property was made, it becomes very difficult to prove where the money came from.