Recently, crypto had a hard time due to Binance’s defeat in the fight against the SEC, frequent lawsuits and other attempts by the regulator to conquer the crypto industry.

 Did all this break the legendary anonymity and confidentiality of the cryptocurrency sphere?

 To begin with, let’s look at cryptoassets more globally.

Cryptocurrencies are digital assets that operate on blockchain technology, which guarantees decentralization and transparency of operations. A blockchain is a technology, that store information about all transactions.

 Every member of the network can view the history of all transactions. This is called a public ledger. Blockchain addresses can be compared to public names used to identify people. But they are created from special secret names that only the owners know. Thus, blockchain addresses do not contain any personal information about the owners, such as their real names or places of residence. This helps to maintain the privacy and security of cryptocurrency address owners.

What destroys this whole reliable and completely anonymous systеm?

In most countries, users of cryptocurrency exchanges are required to carry out the KYC procedure. This means that you are required to disclose your personal information when registering on the exchange. If the exchange decides to cooperate with government agencies, this information can be used for deanonymization. Currently, absolutely all exchanges cooperate with government agencies in one way or another.

Some crypto services track your IP address and, if necessary, can give it to the authorities for deanonymization. Most often, this is done by crypto exchanges.

For example, the United States regularly seizes cryptocurrencies, and this has led to the fact that the US government owns more BTC than any other country. The authorities are combining all approaches to find or identify cryptocurrency and confiscate it.

You may ask: what to do then?

Use reliable cryptocurrency services and avoid crypto exchanges or other non-anonymous structures.

If you value your anonymity and want to conduct any crypto transactions confidentially, please contact AnyExchange.