• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Breaking News: Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Play Casino GamesTry
  • Play FinanceTry
  • Claim 7 BTCTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Caught In SEC Legal Crossfire, COIN Price Suffers
coin mixer bitcoin crypto

Major Exchange Restricts Crypto Transactions Linked to Coin Mixing, Sparking Privacy Concerns

Rick Delafont by Rick Delafont
3 years ago
in Cryptocurrency Market News
Reading Time: 2 mins read

Another crypto trading service appears to have started flagging transactions associated with coin mixing services. Although good for regulatory compliance in the industry, the emerging trend represents a clear invasion of privacy.

Paxos seems to have joined Binance in restricting transactions involving coin mixing services. A user of the exchange reports the platform questioning them over a recent Bitcoin transaction involving a coin mixer.

Users of Crypto Coin Mixers Targeted by Another Exchange

According to a Twitter user, the cryptocurrency exchange Paxos has started restricting services to users of privacy-enhancing tools. In the following tweet, Ronald McHodled (@RonaldMcHodled) shows a message apparently from the platform’s support team.

Wtf?? Apparently you are not allowed to do what you want with your bitcoin once you own the keys. Fortunately that's not how Bitcoin works, but the level of chain analysis here is alarming. What is a correct response? @MartyBent @matt_odell @vandrewattycpa pic.twitter.com/BhMDThLHGc

— Ronald McHodled (@RonaldMcHodled) January 28, 2020

It informs the user that the company has identified a withdrawal from the platform involving a coin mixing service. According to the message, Paxos does not permit such transactions.

A crypto coin mixer or tumbler is a service intended to improve the privacy of digital assets built on open public blockchains. They work by pooling a group of the same asset and distributing random “coins” from the pool back to each participant. This obscures efforts by blockchain forensics companies to track digital assets.

In a subsequent tweet to the above thread, the user explains that the terms and conditions they originally agreed to did not mention mixing services. They add that they simply were mixing the coins as a privacy measure before placing them in long term cold storage.

Commenting on the level of “chain analysis” on display, Ronald McHodled notes that they actually first sent the Bitcoin withdrawal in question to a private address. They then went on to mix the coins, which prompted the alert from Paxos.

The Paxos example is the second of its kind in less than two months. At the end of last year, NewsBTC reported on the experience of a Binance Singapore user.

The user was withdrawing Bitcoin to Wasabi, a wallet with a built-in Coin Mixing service. The exchange froze their account and demanded information relating to the nature of the transaction, including the user’s annual income.

A Dangerous Precedent for Privacy?

Although a clear attack on financial privacy, the censorship of the above transactions should hardly come as a surprise. After all, exchange platforms like Binance and Paxos are attempting to remain as regulatory-compliant as possible in an ever-changing landscape.

Such reports are still isolated, yet it’s likely we’ll see more of them in the future as crypto exchanges attempt to curry the favour of global regulators. One of the major bones of contention lawmakers have with the industry is that crypto assets may enable money laundering. The fear is that coin mixing services make such financial crimes easier.

Exchanges clamping down on coin mixing users seems likely to drive more privacy-conscious and technically able crypto users to build alternatives to centralised exchanges. Although examples of decentralised exchanges do exist, they don’t yet solve the problem of trading digital currency for fiat. If the market demands more privacy, such platforms may well evolve to encompass trades to fiat. In turn, they may well become the go-to solution for crypto trading.

 

Related Reading: Analyst: Bitcoin Dips Are Bought at a Remarkable Rate, Making $10k Imminent

Featured Image from Shutterstock.
Tags: coin mixingcryptoprivacy
Tweet123Share218ShareSend
Rick Delafont

Rick Delafont

Based in Europe, Rick has written about the cryptocurrency industry since 2016. He was first drawn to Bitcoin as a means of payment but quickly became fascinated by its wider potential implications. His interests lie in the political, economic, and social impact of the unfolding digital asset revolution.

Related Posts

Cardano Ada cryptocurrency coin close-up, in front of a price chart

Cardano (ADA) Declines As Market Recovers Amid Security Charges

4 hours ago
The Future of Tokenization: Exploring HedgeUp (HDUP),  Ripple (XRP), and Ethereum (ETH)

The Future of Tokenization: Exploring HedgeUp (HDUP), Ripple (XRP), and Ethereum (ETH)

10 hours ago
Investing Strategies for HedgeUp (HDUP): Long-Term Hold or Short-Term Trading?

Investing Strategies for HedgeUp (HDUP): Long-Term Hold or Short-Term Trading?

11 hours ago
HedgeUp Smashes Stage 3 of Presale While Shiba Inu Faces Challenges Amid Market Volatility

HedgeUp Smashes Stage 3 of Presale While Shiba Inu Faces Challenges Amid Market Volatility

11 hours ago
LDO

LDO Leads Top Coins, Registers 6% Gains In One Day

13 hours ago
Optimism

Now That Optimism ‘Bedrock’ Hard Fork Is Done, What Can We Expect?

15 hours ago

Premium Partners

Play Finance

Now Trending

  • Potential 20x+ Crypto Presales 2023

    1 week ago
  • Willing to buy new crypto: Here are the best 10...

    1 week ago
  • Best Crypto Meme Coin Presales in 2023

    1 week ago

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

  • Bitfinex and GoCrypto announce the listing of the GoC token

    11 hours ago
  • Fetch (FET) and InQubeta (QUBE) Overtake AltSignals in the...

    12 hours ago
  • Atomic Wallet Hack Reiterates Importance of AI Cryptos To...

    14 hours ago
  • How to Save On Trading Fees Using the Best Analytic...

    15 hours ago
  • Missed out on Miladys (LADYS)? Don’t Fade Uwerx...

    17 hours ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Play Casino Games
  • Play Finance
  • Claim 7 BTC

© 2023 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.