Why do most exchanges not accept mixture bitcoin?

[Crypto123 0]

Why are most exchanges not accept mixture bitcoin?

Hi friends
It is known that there is a way to hide the Bitcoin identity and maintain privacy by using a mixer technology that hides the original trace of your Bitcoin transaction that no one will be able to track your bitcoin.
Now the exchanges are using a new technology through which can know Bitcoin is mixed or not, and if Bitcoin is mixed then these exchanges reject it and you cannot deposit in it.
Mixer was a very good way to maintain privacy, but they found a way to prevent people from using the mixer service that maintains privacy !!!
Of course, this technique they use to detect bitcoin mixture is expensive and I don't know what the reason is to bear these additional costs ?? !!! What matters if the bitcoin is mixed or not?
 
I recently heard that there are a lot of exchanges that no longer accept mixture bitcoin via bitcoin mixers and now ask:
What makes exchanges refuse to mix Bitcoin?
What makes exchanges spend these big expenses to see if Bitcoin is mixed or not?

[Ismoney 230]

I do not actually understand what you meant by mixture Bitcoin. However, every cryptocurrency exchange knows what they want due to the initial target before spreading globally.

[Crypto123 0]

37 minutes ago, Ismoney said:

I do not actually understand what you meant by mixture Bitcoin. However, every cryptocurrency exchange knows what they want due to the initial target before spreading globally.

Well my friend, bitcoin mixer is a paid service provided by some sites called mixers, where you deposit the bitcoin that you want to mix and then they send it back to you with a new address for some fees, the goal of this process is to hide the effect of bitcoin.
You can learn more about bitcoin mixer from my topic here:
https://cryptotalk.org/topic/22824-what-is-a-mixer-what-do-you-know-about-it/

 

[BTC Future 3946]

On 6/11/2020 at 11:18 AM, Crypto123 said:

What makes exchanges refuse to mix Bitcoin?
What makes exchanges spend these big expenses to see if Bitcoin is mixed or not?

@Crypto123 First of all I want to admit that you are writing really interesting posts, and I just don't have any reactions left to give everytime I read them, at least the last couple days. I will try to remember and come back!

About the questions now:

Some exchanges don't accept transactions from Wasabi and other mixing services because they are asked not to. The US exchanges as Coinbase and Kraken are working under strict regulations to prohibit any funds that might be coming from illegal activities. I remember Coinbase in the past blocking transactions and wallets because the funds were coming from unregistered gambling sites. Sometimes gambling is used for wash trading so they just didn't want to risk. Basicaly the US exchanges they either do everything they are told or lose their licences.

Now there are exchanges as Binance that while they might run from anywhere in the world, they still got contacted and probably asked to follow some rules or forced to be shut down. 

I don't think that the cost is too much for them either. They did partner with Chainalysis and perhaps they provide Binance and other exchanges with the addresses that mixers/tublers use to obfuscate transactions. Coinbase acquired Neutrino for this reason along with others.

Edited June 13, 2020 by BTC Future

[Whited35 15285]

@Crypto123After navigating so many pages in this section, I have found your this interesting topic 😉 Well, I think they have implemented some sort of technology to filter transactions which are coming from some sorts of mixing platform. Let's see what a Bitcoin mixing platforms a mixing operations, there will be multiple transactions in a very short time or in sometimes it adds a delay to randomizes transaction amounts and I think it would not so hard for reputed exchange platform like Coinbase and Binance to detect from where transactions is being processed. 

[Crypto123 0]

9 hours ago, BTC Future said:

@Crypto123 First of all I want to admit that you are writing really interesting posts, and I just don't have any reactions left to give everytime I read them, at least the last couple days. I will try to remember and come back!

About the questions now:

Some exchanges don't accept transactions from Wasabi and other mixing services because they are asked not to. The US exchanges as Coinbase and Kraken are working under strict regulations to prohibit any funds that might be coming from illegal activities. I remember Coinbase in the past blocking transactions and wallets because the funds were coming from unregistered gambling sites. Sometimes gambling is used for wash trading so they just didn't want to risk. Basicaly the US exchanges they either do everything they are told or lose their licences.

Now there are exchanges as Binance that while they might run from anywhere in the world, they still got contacted and probably asked to follow some rules or forced to be shut down. 

I don't think that the cost is too much for them either. They did partner with Chainalysis and perhaps they provide Binance and other exchanges with the addresses that mixers/tublers use to obfuscate transactions. Coinbase acquired Neutrino for this reason along with others.

Thank you my friend, you are one of the good people on the forum who knows the value of posts. For reactions, don’t worry, my friend, it’s not a problem that, your good feeling is enough for me.
Yes, I know that most of the exchanges have become subject to American laws in one way or another, even Binance, who does not know exactly where they are exactly, is following US laws.
My friend (who is a gambler) told me that even some gambling sites are refusing to accept bitcoins coming from mixers.
Of course we are against illegal activities and money laundering but on the other hand with privacy and decentralization. I fear that this legal argument can be used to fight the privacy and decentralization of Bitcoin.

[Brand1 1336]

You are right. I recently noticed that there are many stock exchanges and sites that have begun to reject addresses of fictitious currencies. I believe that the reason for rejecting these addresses is due to the presence of many addresses mixing sites that have become fraudulent and that replace our address with fake addresses, in this way the money will be stolen when The site or the stock exchange sends it to you and this matter will lead to a lack of user confidence in the platform or the site because the person thinks that the site is the one who did not pay him

Edited June 14, 2020 by Brand1

[Crypto123 0]

11 hours ago, Whited35 said:

@Crypto123After navigating so many pages in this section, I have found your this interesting topic 😉 Well, I think they have implemented some sort of technology to filter transactions which are coming from some sorts of mixing platform. Let's see what a Bitcoin mixing platforms a mixing operations, there will be multiple transactions in a very short time or in sometimes it adds a delay to randomizes transaction amounts and I think it would not so hard for reputed exchange platform like Coinbase and Binance to detect from where transactions is being processed. 

Thanks my friend, yes it is not difficult for the well-known platforms to discover bitcoin mixing but this service is expensive (i.e. mixer discovery service), this is what makes me wonder why they pay the extra costs? Certainly, these platforms are under pressure from some governments, especially the United States.

[Whited35 15285]

14 hours ago, Crypto123 said:

Thanks my friend, yes it is not difficult for the well-known platforms to discover bitcoin mixing but this service is expensive (i.e. mixer discovery service), this is what makes me wonder why they pay the extra costs? Certainly, these platforms are under pressure from some governments, especially the United States.

The same here brother not only the case of USA. Bitcoin mixing is done to hide origin of transactions which criminals might find very useful to hide their illegally earned money. Our government authorities are extremely sensitive against money laundering and tax evading cases.

[Raqeebzy 6456]

I believe it is mainly due to the enough privacy provided by it, nothing more. These days the crypto community is loosing it's right to privacy. The anonymity promised by cryptocurrency is coming under serious compromise and we surely we can't put the blame totally on the exchanges. Exchanges in Europe must follow the EU Anti-Money Laundery Directive and ensure their customers follows all KYC proceedures if they wish to keep on operating and so similar thing in the United States where Coinbase, Gemini falls under; only few top exchanges. 

Using mixers on exchanges like Binance might get your account frozen and to recover it, you might need to go through some verification processes.

[magd 5231]

Perhaps the bitcoin mixture causes penetration by people whose addresses are unknown and adversely affect the platform's reputation or penetrate it using cloaking and steal currencies. For this reason the platforms pay costs to discover and reject the bitcoin mixture

[Crypto123 0]

1 hour ago, Raqeebzy said:

I believe it is mainly due to the enough privacy provided by it, nothing more. These days the crypto community is loosing it's right to privacy. The anonymity promised by cryptocurrency is coming under serious compromise and we surely we can't put the blame totally on the exchanges. Exchanges in Europe must follow the EU Anti-Money Laundery Directive and ensure their customers follows all KYC proceedures if they wish to keep on operating and so similar thing in the United States where Coinbase, Gemini falls under; only few top exchanges. 

Using mixers on exchanges like Binance might get your account frozen and to recover it, you might need to go through some verification processes.

Yes my friend, and this is bothering me about it, Bitcoin and Crypto have begun to lose its privacy and decentralization through these strict procedures that exchanges are doing under pressure from the governments of the countries in which they reside, I think we are slowly losing the beautiful dream that Satoshi dreamed of (and we all also) created A completely anonymous, decentralized encrypted world.

[George10 9932]

Some exchanges may not accept mixture bitcoin maybe it's because of the increase of hackers who are bringing many exchanges down and they feel this mixture bitcoin can make them vulnerable for this since it's transaction can't be traced as you said,that's my opinion.

[Zaino34 0]

I have noticed this, some stock exchanges do not accept bitcoin mixing sites, and I think the reason for this is that these sites and exchanges avoid making trouble because many of these sites have become fraud sites so stock exchanges avoid using this feature to avoid tracking transactions

[Saj555 2250]

On 6/11/2020 at 3:21 PM, Crypto123 said:

Well my friend, bitcoin mixer is a paid service provided by some sites called mixers, where you deposit the bitcoin that you want to mix and then they send it back to you with a new address for some fees, the goal of this process is to hide the effect of bitcoin.
You can learn more about bitcoin mixer from my topic here:
https://cryptotalk.org/topic/22824-what-is-a-mixer-what-do-you-know-about-it/

 

Thank you for the clarification. Because the word was totally new to me. And i guess some users ers like me also couldn't understand it in a specific way. So newbie will be benefited by your answer so much. So you did an excellent job about clearing the doubts about the mixture of bitcoins by your post. 

[Nezar 7169]

The reason that some stock exchanges reject the addresses that are made through the mixer is because there are many users who have started using some fraudulent mixers that are intended for theft as the main address is exchanged with a fraudulent address through which the money is stolen