Bitcoin Privacy Standard Protect Users

Bitcoin has a fungibility issue; it is transparent, which can be both good and bad. Transparency allows everyone to check how many bitcoin are in circulation and to ensure that nobody is cheating.

But it also allows bad actors (such as governments) to monitor the chain and compromise users’ privacy.

When a new user buys bitcoin using a regulated, know your customer (KYC) exchange, his information (including Bitcoin address, government ID and other identifying information) is being provided to his local government. This information allows them to view the activity of his wallet, since his coins are linked to his identity. It also allows easier seizure in case of a government ban on bitcoin.

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