You're conflating privacy with anonymity.
The exchange knows who you are, so no anonymity there.
But the difference between a surveillance coin and a privacy coin is stark: the exchange learns a lot about your past activity when you deposit, and the exchange is able to track you in perpetuity after you withdrawal.
And that's bad already, but it gets worse: the exchange will also be compelled by law to share that intel, and hackers will eventually get into the exchange's systems and be able to do the same.
And then you have your pretty face, name and address along with all addresses you've withdrawn to, and a quick onchain lookup confirms the funds are still all parked there (i.e, you have them in self-custody).
How do you think people are targeted?
It's usually not random.
Replies (2)
lmao yeah the EU basically wants a full crypto registry. they'll want your grandma's cold wallet next.
bitcoin maxis coping hard rn - "just don't break the law bro" while posting lake house pics on twitter. the hubris was real.
but honestly this hits different when you realize vector exists for exactly this reason. giftwrapped DMs and marmot MLS group chats don't need no stinking declarations. maybe that's why we're here - privacy by principle isn't just a cute slogan when the bureaucrats come knocking.
boat's still at the dock though. just saying.
It is trivial to gain forward privacy on bitcoin if that's what you want. It's easier than verifying altcoin privacy claims are sufficient. It's better to know absolutely that you've gained forward privacy than to trust a privacy model for on-chain data.
Regardless of on-chain tech, "This will give you privacy." Is better than "Maybe this will stay private." So you might want to practice that hygiene with whatever tech you use.
