Despite the decentralized nature of Bitcoin, digital coin transfers are not anonymous. All transactions are recorded in the blockchain, in which the chains of transactions and wallet balances are visible. After the withdrawal of the cryptocurrency to fiat, it is possible to determine the owner of the coins by indirect data. To create a BTC wallet and transfer coins, you do not need to go through KYC. But there are ways to determine the identity of the sender by indirect data. Blockchain reliably records transactions, but makes them transparent. The data cannot be changed, but it is easy to track.

Choosing the Right Bitcoin Mixer: Factors to Consider

Bitcoin mixer complicate the identification of the user’s identity. Several technologies are used for this, but they have the same principle — the client sends unverified Bitcoin from one address and receives clean coins from different sources to another account. Thanks to the participation of an intermediary, it is impossible to find a connection between these wallets and identify the user. Why Bitcoin Mixers are needed

States are purposefully tightening the rules for regulating the crypto industry. In order to obtain a license from the European Union or the United States, exchanges undertake to allow only verified clients to trade. Law enforcement agencies have developed a number of measures to identify account holders. The identity will be established if the user:

Common Misconceptions About Bitcoin Mixers Debunked

He will send bitcoins from the exchange to his wallet or perform the reverse operation.

Will pay for the purchase with coins.

Will withdraw digital money to the card.

Law enforcement agencies mainly track large amounts. But there is no guarantee that the rules of the game will not change. A few years ago, only transfers over 700 thousand rubles fell under bank filters. In 2022, users faced blockages even when receiving 40-50 thousand rubles from exchanges (exchangers). Studies by reputable industry agencies debunk the myth of the close connection of Bitcoin mixers with crime. For example, Chainalysis found out the following:

Only 8.18% of cryptocurrency transactions are connected with crimes.

2.7% of coins were used in darknet transactions

More than 40% of assets come for mixing from exchanges.

Privacy enhancement services are in demand among businessmen and traders. Large market participants keep serious amounts on their wallets, which attracts intruders. In a decentralized ecosystem, you can remain anonymous. But after the withdrawal of coins to a traditional bank, the identity of their owner is easily established by indirect signs. Checking coins for purity

In 2023, all major platforms verify customers and conduct transactions through an AML filter. Operations are assigned a rating based on the degree of risk. If the service determines that the coins have been seen in the Darknet or mixers, they will be blocked.

However, investors are not immune from buying “dirty” coins. They can be obtained from dubious exchangers or from individuals. Some mixers send customers their own assets or cryptocurrency with a lower rating. Regulation of Bitcoin Mixers

States demand transparency from cryptocurrencies, therefore they oppose mixing services. For example, in the UK, it was proposed to regulate such platforms. But in some countries, the work of bitcoin mixers is legal. However, this makes the work of BTC mixers meaningless. The SEC recognizes that new rules are needed for such services. The crypto community is convinced that the privacy of financial information is the prerogative of every person. In 2023, the Fight for the Future Coalition of Digital Rights Organizations published an open letter to the US government, which was signed by influential industry companies – Ledger, Zcash, Mobile Coin and others. In it, businessmen and developers are asked to give more freedom to the market. Blocking mixers harms the industry as a whole and slows down the development of privacy-oriented technologies.