Binance Releases Frozen BTC After User Promises To Stop Using Coinjoin
- Alexane johnson
- Dec 23, 2019
- 2 min read
On Saturday, Binance released frozen BTC after the user ensured not to use CoinJoin service in the future. Binance warned the users who were using the CoinJoin, one of the crypto services that make transactions anonymous.
On December 19, according to an ongoing Twitter debate, a user named Catxolotl uploaded a correspondence, appearing to be from Binance Singapore staff. The correspondence was about an investigation regarding the withdrawal of an unknown amount of BTC.
Binance Not In Mood To Tolerate CoinJoin
CoinJoin refers to a technique in which all Bitcoin transactions are mixed with unspent transaction outputs (UTXOs). It also hides the identity of who initiated the transaction to improve the user’s privacy.
Binance stated that they froze BTC because Catxolotl was using CoinJoin through a wallet provider, Wasabi. To confirm the problem, a representative from Binance, explained that Binance SG works under the regulatory requirements set by MAS and its regulatory partner, Xfers. Besides this, AML CFT controls are also set for Binance SG. He also stated that Catxolotl accidentally broke one of their regulatory mechanisms, which resulted in an investigation from their side.
Changpeng Zhao statement
The CEO of Binance, Changpeng Zhao, said through his email that Binance Singapore does not allow any transaction, directly or indirectly related with P2P, gambling and darknet/mixer sites.
Both Binance and Changpeng Zhao are not feeling sorry about what they saw as abiding by local laws. An intense debate has also started on social media, in which some of the most notable Bitcoin figures are clashing over the decision to obliterate transactions with improved privacy.
The controversy between Wasabi and CoinJoin
A Bitcoin maximalist, Giacomo Zucco’s note said that some advocates use Coinjoin to please politicians and bureaucrats, but they don’t tell the risks of using it. This controversy has further reached to CoinJoin and Wasabi. The creator of BTCPay, Nicolas Dorier, hit back at suggestions Wasabi could regulate how exchanges handle its transactions. Finally, CZ has published a dedicated blog post stating the nature of regulations Binance is ready to compromise with.
#bitcoin#blockchain#Blockchain News#Blockchain Technology#Crypto Exchange#Cryptocurrency#Cryptocurrency Market#Cryptocurrency News
Comments