Friday, May 31, 2013

Bitcoin Anonymity Dream: Dying?

Bitcoin Anonymity Dream: Dying?:
While the public nature of the transaction record makes many
scoff at those who think Bitcoin has
any anonymity feature at all
(I find this Wiki a decent
lay-understandable explanation of how Bitcoin can be
, and how it's vulnerable), I
wrote last week
about how the federal government's attempts to
regulate Bitcoin exchangers meant that any anonymity for those who
want to turn Bitcoin into government fiat money may be a dead

And today
this news from Silicon Angle
Less than 24 hours after the DOJ
outlined its case against Liberty Reserve
, Bitcoin’s largest
exchange site Mt. Gox has stated that from now on, it’ll require ID
verification from anyone who wants to deposit money with it in
order to buy bitcoins. We’re not totally sure if this is a
knee-jerk reaction to Liberty Reserve’s take down or not, but
certainly one of the DOJ’s major gripes with that payment processor
was that it let just about every man and his dog sign up without
Here’s Mt. Gox’s full
Statement Regarding Account Verifications
The Bitcoin market continues to evolve, as do regulations and
conditions of compliance for Mt. Gox to continue bringing secure
services to our customers. It our responsibility to provide a
trusted and legal exchange, and that includes making sure that we
are operating within strict anti-money laundering rules and
preventing other malicious activity.
As a result, beginning May 30th, 2013 all Mt. Gox user accounts
are required to be verified in order to perform any currency
deposits and withdrawals. Bitcoin deposits do not need
verification, and at this time we are not requiring verification
for Bitcoin withdrawals.
In the past two months Mt. Gox has invested in more than
doubling our verification support staff, and we are currently able
to process most verifications within 24~48 hours.....
explains what this means
On Thursday Mt. Gox announced that it would begin requiring
“verification” for all accounts seeking to deposit or withdraw
currencies other than Bitcoin, a measure that means users would
need to submit government identification and a utility bill or
information about the company they work for to trade Bitcoins for
traditional money, in effect ending anonymous use of the