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    Author Topic: Governments/regulators may eventually actually *like* Bitcoin. - coin blacklists  (Read 4434 times)
    julz (OP)
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    December 02, 2011, 06:01:09 AM
    Last edit: December 02, 2011, 06:14:28 AM by julz
     #1

    See my question on stackexchange regarding a viral 'tainted-coin tagging system'
    http://bitcoin.stackexchange.com/questions/2119/is-there-any-way-the-bitcoin-network-could-resist-a-viral-tainted-coin-tagging-s

    Basically the issue is that due to the public blockchain, regulators could publicize coin-address blacklists which affect the spendability of your coins with audited exchanges and merchants.

    Such blacklists would eventually allow governments to instantly create and remove sanctions on businesses, other countries etc.
    The sanctions could be applied gradually e.g starting out as a 1% tax - or be a complete ban and penalties for anyone accepting coins with a bad transaction in it's history.

    Don't want to risk accepting pedocoins or terrorcoins in your wallet?  Better use software which subscribes to our list so that your coins are clean!

    As there would be multiple regulators around the world with constantly updating databases of 'tainted' coins - the wallet software would need to be smart enough to subscribe to them and let you know where you can and can't spend certain coins, or what premium you would have to pay for someone to accept them etc.

    In a world where bitcoins are somewhat mainstream - I presume 'clean' coins would be in high demand and exchange at a significant premium to coins which are tainted and thus less spendable.

    I don't see any way of stopping this sort of thing happening - and although it'll give many people the horrors, I suspect that ultimately it's the possibility of this kind of regulation which might make governments see bitcoin as better to embrace and regulate than try to outlaw.



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