One of the reasons why cryptocurrencies are so popular is that governments can't monitor your property as much and you have more privacy, but is it really impossible to track crypto? I did some research and found out that Bitcoin is traceable. I don't know much about other coins. what do you think? If you have information about this, please share
Can the governments track crypto?
- Thread starter Bango
- Start date
I don't think that is possible. I should too make more research about it before I can make conclusions
Well, I will discuss Bitcoin first, every transaction that is made will be recorded on the blockchain, so that anyone/the government will easily follow the trail of where the transaction is going, how many transactions are, but don't know who owns it, but after the Bitcoin holder transfers it to the exchange then the government will soon find out who owns it. For example you have 1000 Btc stored on Binance your government will recognize you as the owner.
I think the kyc policy that is done by the centralised exchange would make government to track your crypto transaction.
This is why so many people do not like to use the centralized exchange platform to carry out their cryptocurrency transactions.
You are right, if we want privacy, we should not use CEX to store our crypto, because the CEX exchange is under government supervision, and if something happens, the government can work with CEX owners to freeze user crypto.
I think it's a little bit easier for the government to trace the user's Crypto currency, This is because the users for Binace for instance normal do KYC verification with the government issued identify card and personal details.
Instead of KYC, it is our ID card, which is stored on the CEX exchange, so that any of our activities in crypto transactions, even if we use mixers and coin privacy, will eventually enter the exchange, and be known by the government.
One of the reasons why the government are angry and are trying to see to the down fall of crypto currency is the fact that they cannot monitor the assets of the people which they can do with the use of only the local bank system of the country.
Nobody can track crypto to know who owns it. There is a reason you only need a Wallet address to send cryptocurrency to another person. . Transactions can be tracked on the Blockchain by anyone though m
For me I have never been in to the Crypto currency venture therefore I don't have ideas whether the government can have that access to my crypto though I heard that some exchanges would do that on behalf of their users.
Your network provider can't track your transactions on the Blockchain. It is other users of the Blockchain that can track you. If the government wants to track crypto transactions, they can be tracked in the Blockchain to the wallets and not IP address or location.
In my view, all cryptocurrencies are traceable by governments. What matters is the level of interest a particular government has toward a cryptocurrency platform or a user of this platform. With the right tools, a government can perform tracking.