Comment by roenxi

Comment by roenxi 14 hours ago

4 replies

That is an attack on self-custody. If you hold Bitcoin you now have an elevated risk of being picked up in some dragnet and suffering random consequences in unrelated parts of the financial system for reasons that you don't understand. If Bitcoin holders weren't alerted by articles like this, there is actually a pretty reasonable chance that they go in, experiment with Bitcoin and trip off a surveillance system as being "suspicious".

It is unlikely that we know what the penalties for suspicious transactions are in the US legal system. That seems like a matter that should have come before FISA Court at some point so we won't see public records of what the case law is. Even if it hasn't the actual workings of the financial control the US exercises aren't exactly secret but they also aren't exactly easy to follow.

JumpCrisscross 13 hours ago

> If you hold Bitcoin you now have an elevated risk of being picked up in some dragnet and suffering random consequences in unrelated parts of the financial system for reasons that you don't understand

This is exxageration. If you operate a cash business, you're under the same heightened supervision.

  • roenxi 5 hours ago

    When they bought that in it was an attack on using cash. People have been pointing out that cash is under attack for a while.

zerkten 13 hours ago

>> That is an attack on self-custody. If you hold Bitcoin you now have an elevated risk of being picked up in some dragnet and suffering random consequences in unrelated parts of the financial system for reasons that you don't understand.

This is based on the idea that there is some exception from previous rules and regulations. Before Bitcoin existed, lots of these rules were formulated. Now Bitcoin is on the scene and has evolved best practices for self-custody that ignore everything that went before. Bitcoin becoming more popular and integrated means that the rules from US financial system will start to be applied.

There is no surprise in this. If more effort was put into mitigating the concerns of the US financial system (or others) then things like this wouldn't happen. However, the truth is that the philosophies are incompatible so it's just a war of attrition that will unsurprisingly result in conformance to US financial regulation.