How could it be implemented when this bill or similar one eventually passes?
Financial institutions
Banks, LSPs, mining pools, independent miners, exchanges, custodians,... fully KYC, KYB, AML compliant.
Bitcoin Network
Settlement network for financial institutions. Individuals and businesses have accounts with those financial institutions.
Lightning network
Payment network for businesses and individuals. Requires registration for individuals and businesses with a financial institution to gain access to the network.
Lighting channels
Legal channels are all owned and operated by financial institutions.
Lighting payments
All payments are compliant as they are processed and settled by financial institutions.
Miners
Purchases and sells of miners require KYC/KYB. Pool operators have to KYC/KYB hashers.
Nodes
If you are not a financial institution, you don't need a node. Financial institutions use their compliant nodes for their customers' transactions. Only people involved with illicit transactions need nodes.
Opting out
P2P will still exist, black market will emerge and the rest of the world will transact with US Bitcoiners, especially in jurisdictions where it's legal. After all, over 50 years of war on drugs hasn't stop the industry.
Foreign financial institutions
Reporting requirements on US customers will be extended to Bitcoin.
Enforcement
Enforcement doesn't have to be perfect to have a chilling effect. New laws and regulations will be added overtime to improve control. And for those who get caught, it will be a painful experience (asset confiscations, fines, jail time).
Impact on crime
The net positive will be an increase in activities dreamed criminal by the government. So crime will go up, and more means will be needed to combat those new criminals and jails to hodl them.
Why would the government pursue compliance and traceability of all financial transactions except for Bitcoin transactions?
npub10z…rekgh
2023-12-15 02:13:55
in reply to nevent1q…yggn
Author Public Key
npub10z0yzunxl5lmxtmtyz4wt74vgftg7rlspwvz0n7atmfkskmqycnqlrekghPublished at
2023-12-15 02:13:55Event JSON
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"created_at": 1702606435,
"kind": 1,
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"content": "How could it be implemented when this bill or similar one eventually passes?\n\nFinancial institutions\nBanks, LSPs, mining pools, independent miners, exchanges, custodians,... fully KYC, KYB, AML compliant.\n\nBitcoin Network\nSettlement network for financial institutions. Individuals and businesses have accounts with those financial institutions.\n\nLightning network\nPayment network for businesses and individuals. Requires registration for individuals and businesses with a financial institution to gain access to the network. \n\nLighting channels\nLegal channels are all owned and operated by financial institutions. \n\nLighting payments\nAll payments are compliant as they are processed and settled by financial institutions.\n\nMiners\nPurchases and sells of miners require KYC/KYB. Pool operators have to KYC/KYB hashers. \n\nNodes\nIf you are not a financial institution, you don't need a node. Financial institutions use their compliant nodes for their customers' transactions. Only people involved with illicit transactions need nodes.\n\nOpting out\nP2P will still exist, black market will emerge and the rest of the world will transact with US Bitcoiners, especially in jurisdictions where it's legal. After all, over 50 years of war on drugs hasn't stop the industry.\n\nForeign financial institutions\nReporting requirements on US customers will be extended to Bitcoin.\n\nEnforcement\nEnforcement doesn't have to be perfect to have a chilling effect. New laws and regulations will be added overtime to improve control. And for those who get caught, it will be a painful experience (asset confiscations, fines, jail time). \n\nImpact on crime\nThe net positive will be an increase in activities dreamed criminal by the government. So crime will go up, and more means will be needed to combat those new criminals and jails to hodl them.\n\nWhy would the government pursue compliance and traceability of all financial transactions except for Bitcoin transactions?\n",
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}