Are We Witnessing the Death of Privacy in Crypto? 🚨

I don't think we’re seeing the death of privacy just yet. Sure, it’s certainly harder nowadays to buy or sell Bitcoin without jumping through some hoops. Not only are exchanges demanding KYC, but thanks to the Travel Rule, UK and EU exchanges now require you to detail the beneficiary of any withdrawal you make. Even Bitcoin ATMs and shops (at least in Spain) are banned from buying and selling without KYC as of December 30, 2024.

Leaving aside the fact that this new EU regulation has rendered these ATMs and shop franchises uncompetitive (we’re talking fees that are 50x higher than what a CeFi exchange charges) and essentially useless—they probably deserve some compensation for this—it’s just another attack on our privacy. It’s yet another example of a draconian Financial Big Brother at work. And it’s not just about debanking, Operation Chokepoint 2.0, or the Canadian truckers incident—it goes much further.

Take Spain, for instance. They’ve implemented new regulations forcing hotels and Airbnbs to collect 42 data points at check-in. Yes, 42. That includes everything from your phone number and payment type to the names of everyone staying in the room and their relationship to you. And where is all this data going? Into a centralized database that, let’s face it, probably isn’t anonymized or encrypted—and by law, it’s to be stored for three years.

But enough rambling about failed socialist states. Back to Bitcoin. We just need to adapt. Use P2P marketplaces, whether online through Tor or offline at Bitcoin meetups. Ideally, trade small amounts that have gone through mixing services or have been swapped into Monero and back to BTC. Don’t be shocked if, at some point, undercover cops start showing up at meetups to slap you with a fine—or a shiny set of handcuffs—for not disclosing your transaction. So, manage your addresses wisely.

One tool I’ve always wanted to try is the OpenDime—a nifty little “credit stick” that generates and stores private keys without ever releasing them, unless you pierce the motherboard at a specific spot. It essentially allows for an off-chain transaction. Cool, right? The problem is, I’ve never come across one, and honestly, I’d probably be wary of accepting it as a buyer. I suspect the person on the other side of the trade would feel the same way.

But let’s keep things in perspective. The big bad governments of the world have pledged to eradicate poverty, hunger, alcohol, drugs, prostitution, gambling, tax evasion, money laundering, mean posts on X (thanks, UK—and maybe China?), inflation, and corruption. And how’s that going for them? In every case, they’ve failed miserably, often making the problem worse.

Speaking of privacy, let’s talk about the pricing of non-KYC Bitcoin. In most developed countries, the premium for non-KYC Bitcoin can range anywhere from spot price up to 5–10%, depending on demand and availability. Considering the limited supply of truly non-KYC Bitcoin, some would argue that even a 10% premium is worth it for the peace of mind and anonymity. Others have floated the idea of “Bitcoin Tourism” as a workaround—hop on a cheap flight to a country that values privacy and freedom, buy or sell Bitcoin there, and then head back home to your own bureaucratic nightmare. It’s not exactly convenient, but it beats giving up all your data just to make a simple trade.

Stay humble, mint plebs, and stack sats.