Mixers should set up second level verification of address

[albon]

If this is indeed implemented we will probably see kyc mixers soon. This is going to be a truly privacy enhancing service, especially for mixers. Crypto mixers allow for increased security and privacy in blockchain transactions. So they don't want to be known as weak and on the other hand they must be an enabler for hackers especially the hacker group and recently we know some exchange got the hack problem. As mixers become kyc many will want to use centralized exchanges for easy mixing. But mixers should do something to protect their businesses and not be subject to investigation and later closure. No one wants to weaken in his business and always make customer service more valuable.

[MUGNIA]

If this is implemented, we will likely see KYC mixers soon.

If there are KYC mixers, then why are mixers still existing? If something like that began to happen, that means mixers serve no purpose anymore. I can easily make use of centralized exchanges for the mixing if mixers become KYC ones.

In fact, there are still non-KYC exchanges.

It's true that it falls just like other exchanges, there is indeed a positive side to this policy to avoid funds coming in from hacking or money laundering, but it will be abandoned by its users because as we know, mixers prioritize the privacy of their users if KYC then that privacy will be lost.

[Wiwo]

If this is indeed implemented we will probably see kyc mixers soon. This is going to be a truly privacy enhancing service, especially for mixers. Crypto mixers allow for increased security and privacy in blockchain transactions. So they don't want to be known as weak and on the other hand they must be an enabler for hackers especially the hacker group and recently we know some exchange got the hack problem. As mixers become kyc many will want to use centralized exchanges for easy mixing. But mixers should do something to protect their businesses and not be subject to investigation and later closure. No one wants to weaken in his business and always make customer service more valuable.

Some mixer will likely introduce kyc and if that is done, that means such mixer services have gone away from the primary reason does purpose of  mixer which is to increase privacy, and also help customers to avoid the fast radar of the government, so making kyc is going fully centralized.

[hugeblack]

If this happens then we don't need mixers anymore?

Why not just CEX and their P2P?

The next target will be P2P, targeting those with a high-risk AML score.
I'm not comparing KYC mixers to CEX, but if mixers decide to restrict deposits, they will end up imposing KYC procedures.
Even mixers now have a risk score as a primary criterion for evaluation.

[NotATether]

That's stupid.

Why would we want Bitcoin to become fungible?

Do you think they will stop at Lazarus Group? They will use it to blacklist all addresses they don't like. Including innocent people.

I don't understand why some here support daylight robbery of crypto.

This will also cause the price to crash, so everyone else will lose money.

PS. "KYC mixer" is an oxymoron. The purpose of using a mixer is to evade KYC.

[MrSpasybo]

This would be like opening a can of worms. If they were willing to do that now, who knows at to what extent they would cooperate with authorities in the future? Who is to say that they would just stop at blocking tagged addresses? As mentioned already, imposing KYC level verification is not out of the picture.

This proposal has been brought up before, but from what I know, all Mixers have maintained the existing system without user selection. The protocol doesn't prioritize or prevent anyone, which is perhaps what we've always appreciated when talking about blockchain. The core value of Mixers is their ability to provide maximum anonymity for users, there's no reason for them to harm that core value and then be eliminated from the market.

The gap in this market could be filled by a service, for example, Semi-mixers that apply KYC or cooperate with governments. However, I don't rate their ability to survive and profit highly, they might not even be able to reach potential users in the market.

[Blaze]

If this is indeed implemented we will probably see kyc mixers soon. This is going to be a truly privacy enhancing service, especially for mixers. Crypto mixers allow for increased security and privacy in blockchain transactions. So they don't want to be known as weak and on the other hand they must be an enabler for hackers especially the hacker group and recently we know some exchange got the hack problem. As mixers become kyc many will want to use centralized exchanges for easy mixing. But mixers should do something to protect their businesses and not be subject to investigation and later closure. No one wants to weaken in his business and always make customer service more valuable.

I understand that the reason for the attempts to make the mixers more transparent through KYC is in the fight against fraudsters and abuse of the service. I also understand that all those, who care about their privacy, will feel that they are being deprived of something important. It would be rather fascinating if a service was provided to users that did not disclose the private information of these users but also did not go against the law when doing so. It is true that, those who have realised the importance of privacy, would definitely want a solution that ensures the basic right not only has a mere face value but is actually protected and safe enough for the people to perform simple transaction freely. To the best of my knowledge for now, this is what I know, there is about the fact that this Mixer was established basically with the primary function of preserving the secret of one’s wallet or asset owned by one person.

[TryNinja]

Honestly, I would be okay-ish with this idea ONLY if the mixers just refund the coins deemed "dirty" instead of bullying the user with endless KYC and proof of funds. Basically it's some times used as an excuse to steal funds because some users don't want to get blackmailed into being fully doxxed for their coins.

If they only care about processing "clean" coins, then refund and move on. They usually don't because they don't actually care.

[Fivestar4everMVP]

With the recent climbing down of mixers and other privacy-enhancing services, by the authorities, the next big step to help mixers stay ahead of this is to set up a second-step verification of addresses that make deposits, this way, mixers can easily detect inflows from tagged address, this will help them to avoid being used by hackers such as the Lazarus group who have been responsible for the closing down of major mixers and other privacy-enhancing exchanges.


These privacy-enhancing platforms allow themselves via their operational model to be tools in the hands of those criminals, and for sure, it is very important for us to take some steps ahead, these address verification mixers could easily avoid getting into such troubles.

As much as I agree that mixers integrating such idea as this would definitely help them become more friendly with authorities,  I don't also think its really a good idea since doing this would defeat the purpose of mixers in the first place, mixer exist to provide top level privacy for transactions, and anything that will make them introduce any form of kyc on their customers simply means that transaction are no longer private as it should be..

It's really unfortunate though, that mixers have to suffer clamp down from authorities due to bad eggs using their services to launder stolen money, maybe mixers should stop processing transactions from addresses tagged to have stolen money from any platform, maybe this would be better.