Wednesday, January 29, 2020

Some Exchanges Monitor Bitcoin Transactions After Withdrawals for CoinJoin Activity

The concept of adding more privacy to one’s cryptocurrency remains controversial. A growing number of service providers seemingly wants nothing to do with transactions subject to CoinJoin practices. 

This problem has been going for quite some time now.

CoinJoin and Bitcoin Remains Controversial for Exchanges

For some reason, several exchanges do not like it when users deposit funds – or withdraw money – from an account that has a CoinJoin tie-in.

For deposits, that is somewhat understandable.

There have been plenty of illicit Bitcoin streams flowing through exchanges over the years. 

When it comes to withdrawing funds, however, this decision is a bit stranger.

Paxos, for example, is notifying users of withdrawals from their platform going through a Bitcoin mixing service of sorts. 

Given how the funds already ended up in the user’s wallet, such a comment is not appreciated, nor warranted.

Once the user moves funds to a wallet they own the private keys to, exchanges no longer have a say in the matter. 

For reasons unknown, some platforms are convinced that the funds remains their liability regardless.

As such, one has to wonder if more exchanges will display this type of behavior moving forward.

For the average Bitcoin users, being warned of how they decide to handle their own funds is a lot like banks telling them what to do with their money. 

Image(s): Shutterstock.com

The post Some Exchanges Monitor Bitcoin Transactions After Withdrawals for CoinJoin Activity appeared first on NullTX.



Some Exchanges Monitor Bitcoin Transactions After Withdrawals for CoinJoin Activity