This approach is much more to my liking as it is entirely free market, there is only one problem.  As law enforcement you would pay money only to DELAY their spending of that transaction.   The costs will exceed the value of the blocked money eventually and eventually that money would become available again.  Because the 'bad guys' can also run a mining pool they could profit and earn 'interest' on having their money held.

The most that this could accomplish is to slow down 'rapid movement' of funds at a very high price to society.

Terrorism is a non-existent structural problem. First of all, it's not structural. It's not ongoing. Second, it's not political. It's not achieving anything. Third, it's not economical. It's not consistent. Fourth, it's not even cultural. It's a bunch of losers.

Anti-terrorism is the biggest nail hunting hammer that could possibly exist.

Tainting is a solution from someone who can't come to terms with the reality that perfecting a system is not the same as improving it and in most cases it leads to mass graves.

I will collect tainted coins and hand them out at a premium.

"Of all tyrannies a tyranny sincerely exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience." - C S Lewis

"If they wouldn't do that the terrorists could make a damage with the acquired weapons worth of 100 million $."

Does this guy visit you every night?

http://24.media.tumblr.com/tumblr_lmhzw718vW1qjheq2o1_500.jpg

This is so true, and I kind of assumed that at this stage still, the type of people attracted to bitcoin for its differences with regular money already knew this, and are attracted to it because of this.

"The war on terror" is just an excuse to erect police state infrastructure, just like the "war on drugs" is, perpetrated by the power elite, their media cartel, and the posturing stooges they make available for us to elect.

If you can't see it, then ask, would real people, who actually value freedom, be truly scared enough about these or any boogeymen to strip, bend over, and throw away the vaseline? Because that's what's going on. Ask yourself how this is even possible.

Tainting money is part of this infrastructure. This same trinity waging these fake fear wars will already control, by default, what money gets tainted, starting the very moment such a system were to come online, instantly. This is enabled and allowed by sheep.

Today, they want to taint "dirty" money, tomorrow it will be to bail out a giant crooked irresponsible bank. Oh wait, that's also today.

It is hilariously ironic that the currency being talked about is bitcoin, but people who appreciate a decentralized currency for its actual decentralized nature will never go for a scheme used by self-styled protectors to abuse users of a currency in the name of a bullshit "war on whatever-we-hype-to-get-your-panties-in-a-knot".

I know this is an old message but I couldn't help but add my 2 cents as a so-called newbie (I've been into bitcoin for 2 years but never posted until the penny dropped last year) and whilst looking for discussion around identity.

What is really needed is a system where the onus is on the individual to demonstrate their trust worthy-ness much like you do on ebay with ratings but also with upload able documents for identification with select institutions.

We are humans after all and need to know to some degree the person we are dealing with. No point sending money to a wallet address to a guy who 'says' he's 'The Next Jesus' if he is actually just 'The Next Scammer'.

My point is, the individual should be in control of their own identity which can be verified by cross reference from a third party after the  identity holder volunteers information to that 3rd party. Users should also be able to rate trustworthiness of other identities associated to wallet addresses for others to see. (i.e. This guy's great. Sold me some trainers)

The coins themselves are free to do whatever they want. A criminal could have a nice proven identity with associated bitcoin address showing that he's a trustworthy office clerk with a nice job. Meanwhile, he might also have another bitcoin address which he uses for nefarious purposes. He's free to send money too/from his addresses. This won't stop law enforcement from being able to do their job which is track down criminals by following the money trail and it also allows humans to build trust between users/companies/institutions.

The problem with tainting coins is that criminals would just stop using bitcoin as a form of transacting. It would no longer be useful for them. Instead, a separate blockchain would be created that allows criminal transactions to occur with translation between bitcoin and these dark coins happening off the chain... i.e. anonymously. So you'd still end up using bitcoins that were from criminal proceeds. You just wouldn't know it.

We live in a mixed world of opportunists. Money needs to flow freely even through black markets and as a transaction tool for nefarious purposes. That's why the USD has traces of cocaine on nearly every bill.

Just my 2cents.