Being in crypto for only 6 months, I cant quite digest everything you say, but you made me more fearful to buy back in into BTC today - although it has risen again to 39K.
Nice Q. It's not about forcing a DEX to do it. Right now in the industry a transaction can be flagged by chainalysis or other chain analytic providers. Think of these like blockchain auditors. If funds moved through a protocol that the powers that be deem 'flag' worthy, if you or I accept those funds then it's like accepting counterfeit cash.
You are left holding the bag. So now consider how the industry will adopt to something like that? Each wallet provider might create 'green light' transactions... DEXs might advertise 'unflagged funds'.
Creating a 'cost' to society will mean users will adopt their practices to not succumb to these undesirable outcomes... All without forcing anybody to do anything.
The minute you begin running a business in crypto, these issues become glaring. If you hold flagged money in your wallet, it's useless if you want to be legitimate.
Being in crypto for only 6 months, I cant quite digest everything you say, but you made me more fearful to buy back in into BTC today - although it has risen again to 39K.
This tether issue is very important. Pls continue to update us with your insights as this non-crypto $50B business from Asia needs to be resolved.
How can they stop a decentralized dex (forcing them to do kyc) if there’s a a decentralized stable coin ?
Nice Q. It's not about forcing a DEX to do it. Right now in the industry a transaction can be flagged by chainalysis or other chain analytic providers. Think of these like blockchain auditors. If funds moved through a protocol that the powers that be deem 'flag' worthy, if you or I accept those funds then it's like accepting counterfeit cash.
You are left holding the bag. So now consider how the industry will adopt to something like that? Each wallet provider might create 'green light' transactions... DEXs might advertise 'unflagged funds'.
Creating a 'cost' to society will mean users will adopt their practices to not succumb to these undesirable outcomes... All without forcing anybody to do anything.
The minute you begin running a business in crypto, these issues become glaring. If you hold flagged money in your wallet, it's useless if you want to be legitimate.
Ah okay. Yes I think the protocol happi is about to do something like that (flag suspicious money) as well and intergrade it with CEX’s in Q3.
Scary times we live in where they can “flag” your money.
Great analysis. Unfortunately I don’t see anyway to counter this unless privacy coins or maybe a privacy stable coin 🤔