Swap Tracker
June Katz 23 Aug 2023 ◦ 2 min read

Where Is the Crypto World Going: Crypto Censorship Resistance

Where Is the Crypto World Going: Crypto Censorship Resistance

Financial censorship or cutting off access to the global banking system is one of the most powerful tools that government has to punish their enemies. Whether financial censorship is used for the good cause or not the question is does a global decentralized monetary system takes this weapon away from authorities?

Tendencies

For now, a government crackdown on crypto might look quite real: the Biden administration introduces a crypto bill and the Canadian court freezes millions in Convoy protestor funds — including Bitcoin.

The situation in Canada also shows us methods of crypto tracing the government already has. Bitcoin may be uncensorable but it's also radically transparent and law enforcement has been remarkably successful at connecting bitcoin addresses to their users.

Practice

Bitcoin only solves the problem of financial censorship when individuals hold the keys to their own coins. When kept on an exchange the companies in charge maintain custody just like any other bank. 

That means that the government can put pressure on exchanges to freeze the bitcoin accounts which is exactly what happened in Canada where protesters' crypto assets were seized. Without an easy off-ramp into cash, spending the funds became a challenge for protesters.

Concerns

It should be noted that the anonymity of cryptocurrencies such as Bitcoin, Litecoin, Namecoin and others is understood as pseudonymity, in which a single violation of security measures (for example, the purchase of cryptocurrencies through a regular bank transfer) might lead to the disclosure of the owner's identity. Therefore, cryptocurrencies such as Dash and Zerocoin have been developed to enhance anonymity.

Although governments can't ban blockchain use they can marginalize it and slow down its growth until the necessary tools for control will appear.

The epicenters of the development of cryptocurrencies in the coming years may be some countries where the state and its financial institutions enjoy an extremely low credit of trust among the population.

Related posts

What is MiCA: a comprehensive guide to European crypto regulation

What is MiCA: a comprehensive guide to European crypto regulation

19 Jul 2024 ◦ 7 min read
The Regulation on the Markets in Crypto-Assets (MiCA) isn't just another bureaucratic rulebook made in Brussels; it is a big move of the EU government to wrangle crypto and steer their market. As digital currencies
Crypto and the US elections 2024: all the ways the two are linked

Crypto and the US elections 2024: all the ways the two are linked

28 Jun 2024 ◦ 9 min read
The history of cryptocurrency development is a history of innovations and contradictions. From the birth of Bitcoin in 2009 to the existence of thousands of cryptocurrencies, cryptocurrencies have
Privacy in crypto: is it still possible in 2024?

Privacy in crypto: is it still possible in 2024?

28 Jun 2024 ◦ 17 min read
Cryptocurrency, praised for decentralization, transaction efficiency, and privacy, introduced a new paradigm with Bitcoin
What's the Future of Crypto ETFs

What's the Future of Crypto ETFs

16 Apr 2024 ◦ 6 min read
The future of crypto ETFs is a hot topic that has sparked optimism among investors, particularly in the United States. While Canada and Europe already offer similar products, the anticipation of regulated ETFs owning "physical" bitcoin in the U.S. could significantly impact the indus

Where all instant exchangers met for your smoothest experience

Maximize profits, minimize search

Tags

Cryptocurrencies Regulations

Recent posts

From mining to market: how to sell Pi coin in 2024
The world's fastest-growing crypto markets
Pi network mainnet launch in 2024
Best сryptocurrency wallets in 2024

BTC  to ETH : best rates

btc-icon
btc
0.1