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Re:Blockchain Surveillance Is Accelerating Privacy Tool Deve... by exo762 on Thursday September 01, 2016 @04:21PM (#12408561)
This turns Bitcoin back into cash. Original money system. Any comparisons with money laundering are misguided because it gives users back their privacy - privacy they didn't had because of the fact that blockchain is public. Today they have some privacy while using banking system - average criminals don't have access to their financial information. With new privacy tools for Bitcoin no-one will have access to that information. Just a side effect of "no privileged third parties" system.

If this is money laundering - than cash is money laundering. Plain and simple.

Re:Blockchain Surveillance Is Accelerating Privacy Tool Deve... by auganov on Thursday September 01, 2016 @06:35PM (#12409383)
Cash can be and is tracked. This takes it a step further. I won't be surprised if governments outlaw the use of tumblers or go after everyone with tainted bitcoin (which given a possible high percentage of dirty bitcoin would make them unfeasible). Otherwise, you've given for-profit cybercriminals the last piece to routinely execute perfect crimes.
Re:Blockchain Surveillance Is Accelerating Privacy Tool Deve... by ryanlol on Friday September 02, 2016 @06:39AM (#12412106)
The usage of tumblers is "money laundering" in mostly every country.

> go after everyone with tainted bitcoin

How? What for? owning tainted bitcoin isn't illegal and given the amount of "tainted" coins it's probably not even enough for probable cause.

Re:Blockchain Surveillance Is Accelerating Privacy Tool Deve... by auganov on Friday September 02, 2016 @08:39AM (#12412593)
Well, effectively outlawing tumblers involves investigating people that pay with tumbler-tainted coins. I mean it more in a Patriot Act type legislation sense rather than probable cause [0]. Obviously, if you've got non-tumbled coins with a direct criminal taint then I'm pretty sure that's probable cause already. Just to be clear - coins are not forever tainted in such context. i.e. someone extorts 1 BTC, the victim reports it - it's now tainted. The criminal pays the 1 BTC for pizza, police arrests him. The coin owned by the pizza place is a clean coin again now.

[0] tho I guess in some cases it could very well fulfill it (>50% probability of a crime having been committed)

Re:Blockchain Surveillance Is Accelerating Privacy Tool Deve... by dansze on Thursday September 01, 2016 @05:06PM (#12408884)
To be fair, money laundering is associated with cash in countries where people mostly pay with plastic. Admittedly, the reverse association is fairly weak, as I doubt that bringing up cash will make people think of money laundering all that often.