The Government Wants Your Crypto Data. And Lots of It.
The Government Wants Your Crypto Data. And Lots of It. by Allan Stevo for Mises
TDC Note – Remember those 17 articles I wrote in 2017 about this subject? Yeah, those articles. – CBDC: First China, Now Italy Then You – Central Bank Digital Currency Enslavement
To all you crypto supporters and HODL’ers well, now your’s time!! Don’t think that selling them, trading them or something else is going to wipe out the footprint – it’s on the blockchain – FOREVER. Good luck!!
The Venezuelan government recently announced that its Administrative Service for Identification, Migration and Foreigners (SAIME) is now accepting bitcoin as a payment method for passports.
The problem with that is that bitcoin is not anonymous but pseudonymous.
To interact with any government using bitcoin is to reveal to them the wallet you are paying from. The blockchain is public. When commentators like Caitlin Johnstone and Stefan Molyneux or organizations such as the Mises Institute or TOR Foundation ask for bitcoin contributions, one can follow the money with a blockchain explorer to see how much comes in and how it is spent. One can also see who gave it to them if a donor hasn’t exercised some caution in protecting their privacy.
I would never want the Venezuelan government, the US government, or anyone else who might misuse that information to be able to peek into my crypto finances, especially not through a transaction tied to my passport. Who’s to say that the next time I appear at an immigration checkpoint I won’t be flagged for having too fat of a bitcoin wallet or putting money toward some politically incorrect use?
Though the Venezuelan government dedicates a fraction of the resources to spying on its citizens that the US government does to spying on Americans, there is no need to carelessly provide any government with extra personal data. Knowledge in the hands of the state will be used as a weapon in the hands of the state.
On February 6, 2018, Commodity Futures Trading Commission (CFTC) chairman Chris Giancarlo before the US Senate Banking Committee revealed that the US government uses spot exchanges such as Bitstamp, Coinbase, itBit, and Kraken to glimpse into the industry.
Chainalysis, run by Kraken’s cofounder and former COO Michael Gronager, exists to tie personal identity to bitcoin transactions. Their business model is the reduction of other people’s personal privacy, data that they then monetize by selling it to their customers. Far more sinister than Google or Facebook, which at least anonymize data prior to selling it to advertisers, Chainalysis links real-life personal data, including legal name, to a specific wallet. Many blockchain analysis competitors exist.
Coinbase has recently come under fire for having a similar service, Coinbase Analytics, which has a contract with the US Department of Homeland Security. “Coinbase joins a crowded field of cryptocurrency analytics companies – Chainalysis, Elliptic, CipherTrace and others – vying for a piece of the federal pie. Agencies from all corners of the U.S. government regularly contract with crypto intel firms, inking deals for their tracing software worth millions, and sometimes stretching years,” reports Coindesk.