New Bitcoin Mining Pool Says It Will Censor BTC Transactions

Key Takeaways

  • Blockseer Mining pool will mine blocks that only include filtered transactions.
  • The mining pool will reject transactions from blacklisted wallets.
  • Twitter commentators said that regulators will use the example of Blockseer to force other Bitcoin mining pools to perform transaction censorship.

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Blockseer, a U.S.-based subsidiary of DMG Blockchain Solutions, recently announced a private beta version of a new Bitcoin mining pool. This particular mining pool comes with a unique feature, however.

Blacklisting Bitcoin Blocks

The Blockseer Mining Pool will censor transactions from blacklisted wallets and mandate miners to undergo KYC, according to marketing materials.

New blocks generated by the Blockseer pool will only include filtered transactions. The filters will be based on the data provided by Walletscore,  the company’s own blockchain forensic tool, and other sources like blacklisted Bitcoin wallet addresses. 

Regulators such as the U.S. Treasury Department’s Office of Foreign Asset Control (OFAC) blacklists bitcoin wallets which they have connected to criminal activity. 

OFAC has already blacklisted 20 new Bitcoin addresses owned by a North Korean hacking group in May 2020, for example. 

SIMETRI gains of 484%

Blockseer said the company wants to comply with OFAC and make sure its mining pool also rejects transactions from blacklisted wallets. Sheldon Bennett, COO of DMG, said in a press release

“Blockseer’s pool brings a new compliance-focused standard to the industry, not only in the data the pool provides to its users, but also in the Bitcoin blocks it mines on the network. The pool is focused on being devoid of transaction from known nefarious wallets.” 

Regulating Mining: A Slippery Slope

Various crypto commentators have been less than bullish on the news, claiming Blockseer’s news will set the wrong precedent. Riccardo Spagni, the previous lead maintainer of Monero, said, “it’s only a matter of time till most Bitcoin…

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