How Can You Legally Use A Tumbler?

Posted by Linda | Comments Closed | Blog

The most critical issue in the cryptocurrency industry is privacy, bitcoin is not considered an utterly anonymous coin because all transactions are recorded in the blockchain system. In the field of cryptocurrencies, studies have been conducted on the use of Bitcoin, which confirmed that its use is no more dangerous than traditional money (fiat). And to ensure anonymity, they created a Bitcoin mixer. The service for mixing digital coins allows users to transfer cryptocurrency, observing absolute confidentiality. Traditional cryptocurrency transactions are not anonymous, as they are shared and traceable.

Because the platform exists, you can find out the sender and recipient’s address and the transferred amount. However, these services can only allow you to find the addresses of digital storage, but not data about the participants in the transaction. Suppose crypto storages are tied to an exchange or a cryptocurrency service in compliance with the KYC policy. In that case, transactions can be used to track the actual participants. More than 90% of owners of digital coins use crypto exchanges with a centralized system, where implementing a KYC policy is mandatory. Therefore, this issue concerns those for whom anonymity is essential.

But thanks to crypto mixers, you don’t have to worry about privacy. The coins put into the mixer are combined with the coins of the other participants and mixed. Then the electronic coins are returned to the users. But with such coins, it is no longer possible to track transactions, and even more so to identify the participants in the transaction. To process coins, the user must pay a commission of 1-4% of the amount deposited in the crypto mixer. This commission is transferred to another address of the client’s choice. The general procedure for processing coins is the same, but there may be differences in technology related to which type of crypto mixer you use: centralized or decentralized.

How to use Tumble as a Legally

In most states, cryptocurrency mixers are not technically illegal. But still, government authorities have the right to intervene and blacklist these services. For example, upon discovering that one of the mixing platforms was processing stolen coins, the US authorities shut down the platform. It indicates that American citizens are prohibited from using this mixer, but it will continue to function outside the United States. It is worth noting that Bitcoin mixers are not directly prohibited by law. Therefore, such services are also popular among cryptocurrency scammers. Some states have introduced legislation prohibiting the structuring of virtual assets. Law-abiding owners of virtual coins should be aware of the possible legal implications before mixing. The choice of platform must be approached with all responsibility, having studied several services. And make a choice based on your research. Try to use only reliable and rated services like MixBTC.

Are Coin Mixing Services Liable For Money Laundering?

Statistical research suggests that approximately 15% of all mixed virtual coins have an illegal source of origin, and the remaining 85% come legally. It can also be assumed that 15% of the coins were not used for money laundering but aimed at preventing tracking. Therefore, concluding that 15% of coins have a dark history is wrong. It requires strong evidence. In addition, crypto exchanges have the opportunity for their law-abiding users to provide more anonymity. But do not discount that when shuffling, participants can randomly receive crafted coins with a dark history from other participants.

Who Is A Tumbler For?

Previously, cryptocurrency transactions were considered an anonymous way to transfer digital coins. However, there are still methods for tracking transactions because blockchain technologies fix them. Most cryptocurrency owners want to minimize the fact of monitoring financial transactions to protect crypto storage from the hacking and theft of cryptocurrency. In addition, in many countries, cryptocurrency exchanges are subject to AML (anti-money laundering) and KYC (you need to know the client by sight) policies. Therefore, the user’s identity must be presented. Of course, such measures increase the reliability of crypto exchanges. Still, not all clients are willing to sacrifice privacy, especially those who own large amounts of bitcoins, fearing the activities of cybernetic hackers. Therefore, crypto mixers exist for very important people for absolute anonymity and high transaction security.

Benefits Of A Mixer

We list the main advantages that this digital coin mixing service has:

  • Ensuring Anonymity
  • A high degree of reliability
  • Fast processing speed
  • Exclusion of the possibility of tracking the completed transaction
  • Of course, the whole range of these advantages made crypto mixers so famous

Conclusion: If we compare classical financial transfers, blockchain technology has sufficient transparency, which is only sometimes acceptable for cryptocurrency owners. The history of a digital coin can tell a lot about how its owner makes money and what he spends it on. Digital coin owners can anonymously conduct transactions from one digital storage to another using a cryptocurrency mixer. Depending on the state and sometimes the user’s actions, using a mixer may be regarded as legal or illegal. Of course, a crypto mixer is the best option for those who want to reliably protect themselves from the possibility of tracking the transaction and increase the degree of security of the digital wallet.