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Correct, OFAC only works for people who abide by it (mostly banks). But how do you get your idea working? The whole point of bitcoin and crypto is that its dec
by dgrin91 6y ago
Correct, OFAC only works for people who abide by it (mostly banks).
But how do you get your idea working? The whole point of bitcoin and crypto is that its decentralized. Even if governments bought in, they cant stop individuals
- hajile 6y agoBitcoin is digital, but the stuff bought with bitcoin is not. This "analog hole" is trackable. Sooner or later, someone is going to want to convert bitcoin into some other currency or buy something from a business. Businesses are required to reveal things like bitcoin on their taxes. I'd wager that a large amount of traffic is easily trackable based on cellular data. Imagine you try to buy something and are greeted with "The US government has forbidden access to your account due to it containing bitcoin involved in criminal activity. Go to blah.gov to see what you can do to unfreeze your account and try again". You go there and find out you have to turn over X bitcoin to unfreeze your account and maybe get a recommendation to get a wallet app that can alert you before you get bad bitcoin. After just one time, most people will move to something that makes sure it never happens again which will trickle down into bitcoin to bitcoin transfers too and stop these illegal transfers in their tracks. Extorters will move to other means of payment which will either be easy to track (physical payment or traditional money transfer) or some super-volatile coin where they're very unlikely to get a meaningful payout.